Fast-fashion giant Shein has secured approval from China's securities regulator to list its shares in Hong Kong, marking a significant step towards its long-awaited initial public offering. The decision by the China Securities Regulatory Commission (CSRC) follows more than a year of waiting and concludes a four-year pursuit for an overseas listing.

Shein previously faced resistance for IPO attempts in New York and London. Its planned London listing was stalled by concerns over risk disclosures related to its supply chain exposure to Xinjiang. The company, once valued at $100 billion in 2022, saw its valuation adjusted to about $66 billion in May 2023, with investors reportedly pushing for a valuation closer to $30 billion.

The Hong Kong listing comes amid increasing regulatory scrutiny for Shein. The European Commission is investigating the company under its Digital Services Act for potentially listing illegal products. Furthermore, the axing of de minimis exemptions in the US and potential similar moves in the EU and UK could impact Shein's business model, which relies on low-value shipments to avoid import duties. Shein plans to offer up to 341.6 million shares in Hong Kong.