London tries to revive financial hub status amid competition

Move to overhaul financial sector aimed at attracting listings from modern industries

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Shein, an online retail giant founded in China, had grand ambitions to go public in New York. But as relations between Washington and Beijing soured, the ultra-fast fashion company began taking a closer look at a backup plan across the Atlantic.

The company is now focusing more on the London Stock Exchange for its initial public offering, according to two people with knowledge of the matter. That may not have been the company’s initial choice – but it would be a big win for Britain, which has been wary of its capital city losing its status as a global financial hub.

Mr Jeremy Hunt, Britain’s top finance official, has reportedly courted Shein, anticipating that a major IPO would bolster London’s standing as one of the world’s leading financial centres.

A Shein spokesperson declined to comment; the British Treasury also declined to comment.

By many measures, London is still a crucial financial hub, where prices are fixed each day for precious metals, trillions of dollars of foreign currency are traded and global insurance contracts are written. But the global competition for investors – among cities like New York, Hong Kong, Dubai, United Arab Emirates and Singapore – is intense. Stock listing is a prominent business and a big IPO like Shein’s could be seen as a prize that bolsters the local financial market and sets the stage for other companies to follow.

In an effort to shore up London’s position, British officials are trying to overhaul the financial sector to make the city’s stock market more attractive to modern industries, particularly tech companies, rather than relying on sectors such as banking that historically built London’s financial sector.