The CEO of the London Stock Exchange Group (LSEG) has rejected accusations that the exchange relaxed its requirements to facilitate Shein’s potential £50bn IPO in London.
Shein, a Chinese fast fashion company based in Singapore, has come under fire from human rights activists for its supply chain transparency issues and allegations of forced labor involving Uyghurs in China’s Xinjiang region.
Originally planning to go public in New York, Shein changed its plans after facing concerns from US lawmakers regarding its labor practices and legal disputes with competitors like Uniqlo, who accused Shein of copying their popular shoulder bag.
While Shein has not encountered significant opposition in the UK yet, reports earlier this year indicated that the retailer had filed paperwork in June to list on the London Stock Exchange and had garnered support from the Labour party ahead of the July election.
LSEG CEO David Schwimmer emphatically denied allegations of compromising standards to facilitate Shein’s £50bn listing in the UK, The Guardian reported.
He stated, “To be clear, there is no reduction in standards on the London Stock Exchange. The listing approval process is overseen by the UK listing authority, and if companies meet the requirements – focusing on governance disclosure, among others – they can list on the London Stock Exchange and benefit from our governance and disclosure regulations.”
He also mentioned a promising listing pipeline and the positive outlook for share offerings, particularly in the UK. Schwimmer expressed optimism, saying, “There are indications that several companies are considering entering this market. I am optimistic about the upcoming listings and the market’s trajectory.”
He attributed this positive trend to various factors, including the recent general election resolution, improving macroeconomic conditions, and capital market reforms.
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