Watchdog delays Shein's UK listing amid supply chain scrutiny

Britain's financial regulator is taking longer than usual to approve the fast-fashion retailer Shein's stock market listing because it is checking its supply chain oversight and assessing legal risks after an advocacy group for China's Uyghur population challenged the listing, according to two sources close to the matter.

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Britain's Independent Anti-Slavery Commissioner, a monitoring body of the Home Office, has also raised concerns within government over a Shein initial public offering (IPO) because of allegations about labour practices at its suppliers.

The Singapore-headquartered Shein, which sells $5 tops and $10 dresses made mostly in China in 150 markets worldwide, filed confidentially with the Financial Conduct Authority (FCA) in early June for a London listing.

Shein is also awaiting approval from China's securities regulator for its London IPO, two separate sources said, adding that the approval would likely come after the FCA's decision.

The advocacy group Stop Uyghur Genocide (SUG) announced a legal challenge in June and sent the FCA a dossier in August alleging that Shein uses cotton from China's Xinjiang region.

The US and NGOs have long accused China of human rights abuses in the Xinjiang Uyghur Autonomous Region, where they say Uyghurs are forced to work producing cotton and other goods. Beijing has denied any abuses.

Shein declined to reply to Reuters' questions about the FCA process. Shein has a zero-tolerance policy for forced labour and is committed to respecting human rights, a spokesperson for the company has said.

The company last week announced a global external ESG advisory board to bolster its governance.