Fast-fashion giant Shein has filed for an IPO in Hong Kong to pressure Britain’s regulators to approve its planned London listing, which could be the city’s biggest listing in recent years.

The company privately filed a draft prospectus last week with Hong Kong’s exchange, according to The Financial Times, which cited people close to the matter.

Back in May, reports first surfaced that the retailer was pivoting towards a Hong Kong stock market listing, as its highly anticipated blockbuster bid to float in London struggled to clear Chinese regulatory hurdles.

Shein had filed paperwork with the UK’s Financial Conduct Authority almost a year ago and received the regulator’s green light in April. However, final approval from the China Securities Regulatory Commission (CSRC) has reportedly been delayed, complicating plans to list in the UK.

The company, which was founded in China but is now headquartered in Singapore, began exploring its London listing in early 2024. Its original plan to list in New York came unstuck following opposition from US lawmakers.

If the UK’s Financial Conduct Authority accepts a China Securities Regulatory Commission-approved prospectus, London would still be Shein’s preferred exchange.

The move comes amid growing geopolitical and trade pressures. Changes to US import rules – specifically, the closure of the ‘de minimis rule’, which was a loophole that allowed untaxed imports of goods under $800 – have hit Shein hard.

In February, the company revealed its profits had dropped by more than a third last year. Its net profit declined by almost 40% to £789 million ($1 billion) in 2024.

Annual sales jumped 19% to £30 billion ($38 billion), but were much lower than its initial projections of £42.6 billion ($45 billion) in sales and £3.8 billion ($4.8 billion) in net profit that the business had previously informed investors in early 2023.

Shein’s valuation has taken a hit in this climate. Once expected to go public at a valuation as high as £50 billion, recent estimates suggest the figure may be as low as half that.

The EU is also moving to tighten its tax regime on low-value imports, following similar steps by the US. Meanwhile, UK Chancellor Rachel Reeves is said to be reviewing Britain’s own rules to support domestic retailers who feel undercut by cheap imports. Shein has hinted at diversifying its supply chain away from China to protect its cost advantage, but the company continues to face serious scrutiny over ethical sourcing.

Shein has been contacted for comment.