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Shein Moves Closer to Hong Kong IPO After Reportedly Securing Listing Approval

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Fast-fashion giant Shein has reportedly received approval from the Hong Kong Stock Exchange’s listing committee, clearing a major regulatory milestone as the company prepares for one of the most anticipated initial public offerings (IPOs) in recent years.

According to sources familiar with the process, Shein plans to publicly file its listing documents in the coming weeks, with the IPO potentially launching as early as late August, subject to market conditions. The company has also begun preliminary marketing meetings with institutional investors ahead of the offering.

The Hong Kong listing marks a significant shift in Shein’s public market strategy. Earlier attempts to go public in both New York and London faced regulatory and political scrutiny, prompting the company to pursue a listing in Asia’s leading financial center instead.

Shein is reportedly targeting a valuation between $40 billion and $50 billion—substantially below the approximately $100 billion valuation it achieved during a private fundraising round in 2022. The lower valuation reflects changing market conditions, increased investor discipline, and challenges affecting the global e-commerce sector.

Despite the reduced valuation target, Shein remains one of the world’s largest online fashion retailers. The company generated more than $40 billion in revenue last year and nearly $2 billion in net profit, demonstrating the scale of its global business despite a more challenging retail environment.

The company is also facing growing pressure from regulatory changes in key international markets. New fees on low-value e-commerce shipments in Europe are expected to weigh on sales growth and profitability, adding another factor that investors will likely evaluate during the IPO process.

For Hong Kong, securing Shein’s listing would represent a major victory in attracting high-profile international companies and reinforcing the city’s position as a leading global capital market. The IPO is expected to serve as an important indicator of investor appetite for large consumer and technology-related listings across Asia.

If completed successfully, Shein’s market debut could become one of the largest consumer IPOs of the year and help revive momentum in Hong Kong’s equity capital markets after a period of subdued listing activity.

Pinterest Shares Plunge 18% as Ad Competition and Tariff Pressures Hit Growth Outlook

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Pinterest shares tumbled 18% on Wednesday after the company issued a weaker-than-expected revenue forecast, raising concerns that the image-sharing platform is losing ground to larger digital advertising rivals amid growing tariff-related pressures. If losses hold, the drop would wipe about $4.36 billion off Pinterest’s market value.

The sharp decline contrasts with strong third-quarter results from advertising heavyweights Alphabet, Meta, and Reddit, all of which reported robust ad spending fueled by AI-powered targeting and larger global reach. Analysts said Pinterest’s smaller scale and slower innovation pace are limiting its ability to compete effectively.

Chief Financial Officer Julia Donnelly cited weaker ad spending in the United States and Canada — Pinterest’s biggest markets — as retailers face thinner margins due to new tariffs. “Larger U.S. retailers are navigating tariff-related margin pressure,” Donnelly said, adding that China-based e-commerce giants such as Temu and Shein have also reduced marketing budgets after the removal of the “de minimis” import exemption.

Pinterest now expects revenue between $1.31 billion and $1.34 billion for the current quarter, with the midpoint slightly below analyst expectations of $1.34 billion, according to LSEG data.

“Performance has been fine, but we struggle to see a catalyst for growth,” said analysts at Piper Sandler. Morgan Stanley added that Pinterest “failed to deliver” in a market increasingly rewarding innovation and upward earnings revisions.

Despite Wednesday’s steep loss, Pinterest shares remain up 13.6% for the year — outpacing Meta’s 7.2% gain over the same period.

Shein tightens compliance controls after major fines over privacy, discounts, and greenwashing

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Shein, the fast-fashion giant, is overhauling its internal governance after a string of regulatory fines across Europe for data privacy breaches, misleading discounts, and greenwashing, according to company memos, investor letters, and sources familiar with the matter.

In a letter to investors reviewed by Reuters, Executive Chairman Donald Tang said Shein has launched a “Business Integrity Group” to unify compliance, governance, and external affairs functions, while expanding its internal audit capacity to strengthen corporate discipline.

Over the past three months, the company has been fined €150 million ($175 million) in France for data violations, €40 million for deceptive pricing practices, and €1 million in Italy for greenwashing claims. Shein is appealing the largest fine, but faces further scrutiny from an ongoing EU product safety investigation.

The Singapore-headquartered firm — which ships from factories in China to over 150 countries — is also rolling out stricter compliance frameworks in the U.S., Canada, Brazil, and Mexico as part of a global pilot program. Job postings show new audit and risk management roles in Los Angeles to reinforce oversight.

Tang admitted in the August 25 letter that Shein faces “heightened political and regulatory headwinds” in Europe and tariffs in the U.S., which have slowed growth. Coresight Research projects Shein’s U.S. revenue will rise 20.1% in 2025, down sharply from 50% growth this year, while Europe is expected to surpass the U.S. for the first time.

Shein’s compliance revamp follows mounting criticism of its opaque governance, copyright issues, and environmental standards — with a French OECD agency finding it noncompliant with global responsible business guidelines.