Shein’s mega-IPO plan could unravel as scrutiny intensifies from all sides

Stressin’ in a $3 tube top… First the US scrutinized Shein over its China ties; now China’s scrutinizing Shein over its US ties. Beijing’s mighty internet regulator has reportedly launched a security review of the world’s top ecomm fast-fashion brand, which is gearing up for what could be one of the biggest US IPOs in years. (FYI: Beijing now requires all Chinese companies to get approval before an overseas listing.)

• China’s looking for any national-security risks, including the type of Chinese data that Shein would disclose to the SEC. The review could be a good thing or a bad thing for Shein…

• Worst case: The IPO is not only delayed but scrapped. China launched a similar review into DiDi soon after it listed on the NYSE, which resulted in the Chinese ride-hail giant being delisted.

• Best case: It gets the green light, bringing it a step closer to a US IPO. Shein is said to be targeting up to a $90B valuation.

99 problems and an IPO is one… Shein’s estimated to have raked in $30B+ in sales last year, and most of it came from the States. But unlike American teens, US lawmakers aren’t feelin’ the #OOTD vibes. Shein’s tried to distance itself from China with plans for US distribution centers and splashy marketing, but its laundry list of issues keeps growing:

• IP-theft lawsuits: Last week, fast-fashion chain Uniqlo sued Shein, alleging the biz sold knockoffs of its viral bag. (Indie designers have made similar accusations.) Rival Temu sued Shein last month, accusing it of using “mafia-style” tactics.

• Labor allegations: Last year, bipartisan lawmakers urged the SEC to pause Shein’s IPO till it could prove it doesn’t use forced labor to make its clothes.