Nigel Farage, leader of Reform UK, has expressed strong opposition to the idea of listing Shein, the Chinese-founded fast fashion retailer, on the London Stock Exchange.
Farage criticized efforts by ministers, including Chancellor Jeremy Hunt, to attract the company to London, arguing that would not help revive the market.
Farage stressed that Shein's potential £50bn listing would not strengthen London's financial position. The retailer has faced accusations of forced labor in its supply chain, which it denies. “Encouraging Shein to choose London would be a mistake,” Farage said, adding that it “would not change the IPO crisis” in the city.
He continued: “They see a Shein IPO and say: 'Oh, isn't this great because London needs it.' No, no. Not at all. Saying no to Shein doesn't mean cutting off our nose to spite us. It means we think this is an idea.” Too bad”.
Farage, the parliamentary candidate for Clacton, attributed the difficulties faced by the London Stock Exchange to “excessive regulation” and called for a “radical rethink of financial market rules.” “We have not been freed from EU rules at all,” he said.
Shein was preparing to list its shares in London after political opposition scuttled earlier plans to list in New York. Although founded in China, Shein is now headquartered in Singapore and is preparing paperwork for a potential mega listing, although this does not guarantee it will opt for the UK market.
Both the Conservative and Labor parties have indicated their support for Sheen's listing in London. Labor MPs recently met with the retailer, stressing that “increasing investment, productivity and growth is one of Labour’s tasks for the government.” Jeremy Hunt also held talks with Shein CEO Donald Tang in January, in a bid to persuade the retailer to choose London.
Shein has quickly grown into one of the world's largest fashion retailers, known for its ability to quickly launch new products. However, concerns have been raised about how such low prices can be afforded, with some items being sold for as little as £4. US Senator Marco Rubio said in April that there was a “strong possibility that these companies may have facilitated the import of goods made using forced labor.”
These concerns focus on Shein's Chinese supplier base, especially since much of China's cotton comes from Xinjiang, where there are allegations of forced labor involving Uyghurs. Last week, Peter Hugh Smith, chief executive of CCLA Investment Management, warned that allowing Shein to list in London would risk the city becoming a “listing venue of last resort” for companies with questionable human rights records.
Smith added that government support for Sheen's float “sends a signal that the UK is willing to overlook significant human rights concerns.”
A Shein spokesperson responded: “Shein has a zero-tolerance policy on forced labor and we are committed to respecting human rights. We take visibility across the entire supply chain seriously and require our contract manufacturers to only source cotton from approved regions.”