By Elizabeth Piper
LONDON (Reuters) – The Labour Party, widely expected to take power in the next election in Britain, said it has met with Chinese-founded fast-fashion manufacturer Shein ahead of potential London-listing.
“Labour has met a range of companies including Shein that are looking to invest or list in Britain,” a spokesperson for the opposition party said. “Raising investment, productivity and growth is one of Labour’s missions for government.”
Senior British lawmakers have questioned fast-fashion giant Shein’s suitability for a London stock market listing and called for greater scrutiny of its supply chain and labour practices.
Labour said it expected “the highest regulatory standards and business practices” from any company operating in the UK. “We believe the best way to ensure this is to have more companies operating from and regulated by UK law,” the spokesperson added.
Shein declined to comment on the meetings, which were first reported by The Times. Addressing questions over its governance, a spokesperson for Shein said previously: “Shein is investing millions of pounds in strengthening governance and compliance across our supply chain.”
The meetings come as the online fashion retailer, valued at $66 billion in a fundraising last year, is expected to float on the London stock market this year.
British Finance Minister Jeremy Hunt held talks with Shein’s Executive Chairman Donald Tang in February and the firm is keen to list in London, a UK government source told Reuters.
Shein started engaging with the London-based teams of its financial and legal advisors to explore a listing on the London Stock Exchange early this year, sources told Reuters in May.
The company stepped up preparations for its London listing after its attempt to float itself in New York faced regulatory hurdles and pushback from U.S. lawmakers.
The company is preparing to file a prospectus with Britain’s Financial Conduct Authority for approval of a possible London float as soon as this week, Sky News reported on Sunday.
(Reporting by Elizabeth Piper. Additional reporting by James Davey. Writing by Anousha Sakoui; Editing by Ros Russell)
