Fast fashion giant Shein has received approval for its initial public offering (IPO) on the Hong Kong stock exchange after failures to be cleared in London or New York.

A notice posted to the China Securities Regulatory Commission website Friday showed that the Singapore-headquartered company will be allowed to debut on the stock market after a year of waiting.

Reuters reported that approval for its IPO had to pass through the highest levels of China’s Communist Party, citing a source with direct knowledge of the matter.

The source added that the party views Shein as politically sensitive and were cautious about endorsing a listing on the exchange after scandals including the sale of childlike adult toys and weapons in France and reports of poor labour practices in its Chinese factories.

The company filed its IPO confidentially last year, meaning investors have not had any insights into its finances while its application was reviewed. Now, the company will be able to organise investor roadshows and prepare for its hearing with the Hong Kong stock exchange’s listing committee, both prerequisites for going public.

The source told Reuters that Shein could aim for a September or October listing. The company’s valuation is significantly lower than it was a few years ago, with the source suggesting it could target somewhere between $40 and $50 billion as a total value, down from $66 billion in 2023 and around $100 billion in 2022.

A listing in Hong Kong would draw its protracted attempts to secure listings to a close. Shein initially aimed to go public on the New York stock exchange in 2023, but faced opposition from lawmakers and regulators. It then turned its gaze to London, where it won FCA approval for an IPO in April last year but did not secure approval from Beijing, blocking the deal.

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