5 Jun 2024/PSSI

Since the Prague Security Studies Institute published the report, "Suppliers in Chains: SHEIN's Troubling IPO," SHEIN’s prospects for a U.S.-based listing have dwindled. It is now expected to float an IPO on the London Stock Exchange, where it also faces headwinds. Our report highlighted SHEIN's concerning practices, including alleged human rights abuses, misleading the public, and poor adherence to standards of labor and product safety – corporate behavior which leaves it no place on any Western Exchange.

As reported by the Coalition for a Prosperous America (CPA), SHEIN's plans for a U.S. IPO were likely thwarted by scrutiny from both the U.S. Congress and potential investors. The demonstrable links to forced labor, environmental damage, and consumer product safety discussed in PSSI’s report are cited as key reasons for this opposition. CPA’s Chairman Zach Mottl stated that it is “overwhelmingly clear that Shein should not be allowed to move forward with an IPO in the U.S. or in London.” 

 

PSSI urges both U.S. and U.K. financial regulators to carefully consider the evidence before allowing SHEIN to access either capital market. We believe a strong stance against companies with such a troubling record is vital to protect consumers, investors, and national security.