Even if the IPO rumors were true and Sheen wanted to list in the US, the company would have to come clean about environmental, social and governance concerns.
Fast-rising Chinese fashion giant Shein has denied widespread rumors that it has filed for an initial public offering (IPO) in the US. There were rumors that the company was planning to go public in the US before the end of the year. At that time, a Reuters reports Said Sheen was considering the New York Stock Exchange (NYSE) for its IPO, but it had to suspend its plans due to market volatility caused by the Russia–Ukraine war. The report cited people with knowledge of the matter and said the listing could make Sheen the most valuable Chinese company to go public in the US since Didi’s IPO in 2021.
Sheen turns down alleged US IPO filing
However, Sheen’s spokesperson told CNBC:
“Sheen denies these rumours.”
This comes soon after he was accused of taking advantage of a trade loophole to import goods into the US. The Select Committee on the CCP, a committee exploring the economic competition between China and the United States, issued a communique reports Saying that the Chinese fast fashion retailer and Temu did not pay import duties in 2022 doThe companies avoid taxes and inspections by US Customs and Border Protection, the committee wrote, “making it impossible to determine whether their products are made with Uyghur forced labor in Xinjiang.”
According to the report, both Shein and Teemu are responsible for more than 30% of the packages shipped daily in the US. Brands process it under the minimum provision of section 321 of the Tariff Act of 1930. This helps them avoid import duties if the fair retail value of the shipment does not exceed $800. According to the findings, imports will account for about 600,000 shipments per day in 2022, meaning it could be higher this year. Therefore, lawmakers are of the opinion that the tariff violations unfairly put Sheen and Teemu above US retailers. While Teemu is said to be valued at over $100 billion, Sheen was recently valued at $64 billion.
Sheen’s allegations
before refusing US IPO plan, Sheen was accused of human rights abuses. The company has faced allegations of forced labor at its supplier factories in the Uyghur region. Even if the IPO rumors were true and Sheen wanted to list in the US, the company would have to come clean about environmental, social and governance concerns. been there sick reportIncluding the alleged poor working conditions.
Many said that the Chinese company was violating labor laws and enslaving the workers. An investigation found that workers in some Sheen partner factories worked 12 to 14 hours a day with only 24 hours off each month. Meanwhile, Chinese labor laws state that the working week cannot exceed 40 hours, and overtime must not exceed 36 hours monthly. Also, workers are entitled to one day off every week under the law.
However, a representative for Sheen told CNBC in May:
“We have absolutely no tolerance for forced labor.”
Despite dismissing news of a US IPO, many believe Sheen will eventually list in the US at some point.
Ibukun is a crypto/finance writer interested in delivering relevant information using non-complicated words to reach all types of audiences. Apart from writing, she enjoys watching movies, cooking and exploring restaurants in the city of Lagos where she lives.
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