Shein is a Chinese online fast-fashion retailer. And in 2020, they were the most-talked about brand on TikTok.
Background: Shein is a Chinese online fast-fashion retailer. They launched back in 2008 and are known for their dirt-cheap clothes. And they're popular, too. In 2020, they were the most-talked about brand on TikTok.
What happened: But Shein has had its controversies. It's previously been involved in trademark disputes, human rights violations and climate concerns...but now, they're about to do something big: a New York IPO.
What else: The plan is to list later this year, and the company's founder is even considering a citizenship change to bypass tough rules for offshore IPOs.
💡If Shein lists in the US, it will be the ultimate litmus test for Chinese companies after Chinese authorities implemented some new rules in July last year.
💡These rules would make IPO-ing in the US more complicated, and more time consuming. They may also affect a Chinese company's ability to report on key business metrics.
💡But there might be a little hack: if Shein's founder changes his citizenship...he may be able to bypass the rules. And it might set the scene for other Chinese founders wanting to list in the US too.
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