How Shein was lost by the London Stock Exchange

James Mackreides claims that Shein's market listing would have restored the London Stock Exchange's prominence

Shein, a fast-fashion retailer, is set to debut on the stock exchange. At the end of this month, it will be listed on the Hong Kong market with a target valuation of £25 billion to £30 billion. It appears to be a lost chance for the City of London, though it is unclear if it will be able to do so.

Shein first looked into a listing in New York, but when that seemed problematic, it turned its attention to the City. Shein spent 2024 and 2025 attempting to secure approval for its initial public offering (IPO) here. It passed every test, but the question of whether it was appropriate for the London market continued to arise.

London has to "uphold strong governance standards," according to the UK Sustainable Investment and Finance Association. In a letter to the stock exchange, Liam Byrne, the chair of the House of Commons Business and Trade Committee at the time, demanded that tests be implemented to "authenticate statements" made by companies wishing to list, "with particular regard to their safeguards against the use of forced labour". The message was evident even though the questions were endless. Shein didn't seem like the kind of business that should be allowed to list on such a prestigious market as the LSE.

Shein has questions that need to be addressed.

However, so what? In retrospect, one must wonder what the critics might have been contemplating. Questions concerning Shein's business model are valid. You are probably not giving the factory workers a lot of money when you are selling summer dresses to teenagers all over the world for a fiver or less. Its supply chains, governance standards, and relationship with the Chinese government are all causes for concern. Many of us would probably not want to work for or even purchase products from this company.

However, the harsh truth is that the London stock market is in dire condition. Since 2022, more businesses have left than joined. Over the past two decades, the number of companies listed on the main market has decreased from over 1,700 to under 1,000. London fell to 20th place in the world for initial public offerings (IPOs) in 2024, surpassed by Malaysia and Oman, among many other countries. News of another big company accepting a takeover from a foreign bidder appears almost every week; easyJet was the most recent example, and each time it occurs, the market shrinks. The City is caught in a vicious cycle if it continues on its present course. The market continues to shrink, global investors are less motivated to focus on it, valuations stay low, and more businesses choose to exit the market or never list their shares at all.

A vicious cycle has trapped the London Stock Exchange.

A Shein IPO offered an opportunity to escape that. Despite its flaws, it is a major force in the global fast-fashion market with millions of devoted clients worldwide and a strong business strategy. Few of its rivals have been able to make online shopping successful the way it has. At a £30 billion valuation, it would have been among the largest initial public offerings (IPOs) in Europe this year, shot straight into the top half of the FTSE 100, and added a significant technology company to an index dominated by a few aging banks, oil companies, and pharmaceutical conglomerates.

Shein would have brought the London market back into the spotlight and piqued the interest of international asset managers who have mostly forgotten about it. Following it, many of the rapidly expanding Asian technology companies may decide that London was a good place to list their shares after all, and investors purchasing Shein may also determine that there were a few other companies in the same market that were worthwhile to include in their portfolio. The market would rebound, valuations would begin to increase, and it would become a more desirable location for business owners to list their companies. A positive cycle could have taken the place of a negative one. As it stands, the London market is forced to settle for absurd and conceited moral pretense that nobody is paying attention to.