Shein's Hong Kong IPO: A Last Resort Amid US-China Tensions?

Shein's IPO plans shift from the US and UK to Hong Kong amid US-China tensions and the loss of a key tax advantage. The online fashion giant, once valued at $66 billion, now faces a more uncertain path to the public market. Federal and state officials, including Marco Rubio, raised concerns about the "serious risks of doing business in China." This led Shein to explore alternative options. While aiming for a Hong Kong listing, Shein still faces regulatory challenges. The removal of a US tax exemption, previously allowing tax-free imports under $800, has disrupted Shein's business model, impacting its pricing strategy and competitiveness. The company's valuation is expected to be significantly lower than two years ago.