The Labour Party, which is anticipated to gain power in the upcoming British election, has confirmed meetings with Chinese-founded fast-fashion manufacturer Shein in anticipation of a potential London stock market listing.
“Labour has met a range of companies including Shein that are looking to invest or list in Britain,” said a spokesperson for the opposition party.
“Raising investment, productivity, and growth is one of Labour’s missions for government.”
Senior British lawmakers have expressed concerns about Shein‘s suitability for a London stock market listing, calling for increased scrutiny of its supply chain and labor practices.
Labour emphasized the necessity for “the highest regulatory standards and business practices” from any company operating in the UK.
“We believe the best way to ensure this is to have more companies operating from and regulated by UK law,” the spokesperson added.
Shein declined to comment on the meetings, initially reported by The Times.
Previously, a Shein spokesperson addressed governance issues, stating: “Shein is investing millions of pounds in strengthening governance and compliance across our supply chain.”
These discussions come as the online fashion retailer, valued at $66 billion in a fundraising round last year, is expected to go public on the London stock market this year.
British Finance Minister Jeremy Hunt held talks with Shein’s Executive Chairman Donald Tang in February, with a UK government source revealing Shein’s interest in a London listing to Reuters.
Shein began working with the London-based teams of its financial and legal advisors early this year to explore a listing on the London Stock Exchange, according to sources who spoke to Reuters in May.
The company increased its efforts for a London listing after encountering regulatory challenges and opposition from U.S. lawmakers concerning a potential New York float.
Sky News reported on Sunday that Shein is preparing to submit a prospectus to Britain’s Financial Conduct Authority for approval of a possible London float as soon as this week.