Fast fashion retailer Shein has reportedly taken a significant step towards a potential London listing by confidentially filing papers with Britain's Financial Conduct Authority (FCA) in early June.

This move, reported by Reuters, marks a shift from the China-founded company's original plan to list in New York, which faced opposition from US lawmakers.

Shein, known for its ultra-affordable clothing, was valued at $66 billion in a fundraising round last year. The company's decision to explore a London listing comes amidst a challenging environment for new listings in Europe, as evidenced by the recent postponement of Italian luxury sneaker maker Golden Goose's IPO on the Milan bourse.

While the exact timeline for Shein's initial public offering (IPO) remains unclear, the company must still secure approval from China's securities regulator. One source stated, "Shein has updated China's securities regulator officially about its change of listing venue, but has yet to receive a nod from the China Securities Regulatory Commission."

The potential London listing has garnered interest from Britain's political sphere, with the Labour Party, currently favoured to win the upcoming July election, reportedly indicating its support. However, some senior lawmakers have raised concerns about Shein's labour practices and supply chain.

In response to these concerns, Shein has stated, "We are investing in strengthening governance and compliance across our supply chain."

As the fast fashion giant navigates the complexities of international listings and regulatory scrutiny, all eyes will be on London to see if it can secure this high-profile IPO, potentially boosting the UK market's appeal to other global companies.

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