Human rights group files legal bid to block Shein IPO

STORY: A human rights group has launched a legal bid to block Shein’s expected share listing in London.

Stop Uyghur Genocide has written to Britain’s Financial Conduct Authority, urging it to refuse permission for an IPO.

It’s retained a law firm to take up the case.

That comes amid concern over labor practices in the China-founded company’s supply chain.

The group campaigns to protect the Uyghur minority in China’s Xinjiang region, where the U.S. and others accuse Beijing of running labor camps.

This Reuters video from 2019 shows what China calls a vocational educational training center.

Officials have repeatedly and strongly rejected all claims of abuse at such facilities.

However, Shein was forced to drop plans for a New York share sale after U.S. lawmakers raised similar concerns.

On Tuesday, Amnesty International said a London IPO would be a “badge of shame” for the city’s stock exchange.

It too accused Shein of “questionable” labor and human rights standards.

Reuters sources say the firm confidentially filed for an IPO in early June, paving the way for a listing later this year.

Shein has previously said it is strengthening its governance and compliance to address labor worries.

The FCA has no power to investigate alleged breaches of legislation not under its remit, including the UK’s laws on modern slavery.