The CEO of the London Stock Exchange Group (LSEG) has dismissed claims that the exchange eased its regulations in order to accommodate Shein’s prospective £50 billion IPO in London.
Shein, a fast fashion brand from China with its headquarters in Singapore, has faced significant criticism from human rights advocates concerning its lack of supply chain transparency and allegations of forced labor linked to Uyghurs in China’s Xinjiang region.
Initially intending to launch its public offering in New York, Shein revised its strategy following concerns raised by U.S. lawmakers about its labor practices and ongoing legal battles with rivals such as Uniqlo, which accused Shein of infringing on their popular shoulder bag designs.
So far, Shein has not faced major opposition in the UK. Earlier reports indicated that the retailer submitted paperwork in June for a listing on the London Stock Exchange and received backing from the Labour party in light of the upcoming July election.
LSEG CEO David Schwimmer firmly refuted allegations of lowering standards to assist Shein’s £50 billion listing in the UK, as reported by The Guardian.
He clarified, “To be clear, there is no reduction in standards on the London Stock Exchange. The listing approval process is overseen by the UK listing authority, and if companies meet the requirements – focusing on governance disclosure, among others – they can list on the London Stock Exchange and benefit from our governance and disclosure regulations.”
He also highlighted a strong pipeline of potential listings and a favorable outlook for share offerings, especially within the UK. Schwimmer expressed confidence, stating, “There are indications that several companies are considering entering this market. I am optimistic about the upcoming listings and the market’s trajectory.”
He attributed this positive momentum to several factors, including the resolution of the recent general election, improving macroeconomic conditions, and reforms in the capital markets.
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