Trump’s revival of trade wars puts spotlight on Shein
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Online retailer Shein is said to be working on what could be one of the biggest listings in London in years.
PHOTO: REUTERS
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WASHINGTON - US President Donald Trump’s tariffs on China and other countries are rocking markets and casting a pall over Chinese firms seeking to go public.
Take Shein, the fast-fashion sensation. The online retailer, founded in China but headquartered in Singapore, is said to be working on what could be one of the biggest listings in London
Mr Trump’s executive orders specify that the “de minimis” exemption for packages worth less than US$800 (S$1,000), a loophole used by the likes of Shein for years, will no longer apply. Though Shein has been diversifying its shipping bases ahead of Mr Trump’s trade policies, and the full scope of the de minimis changes is still unclear, it is unlikely the company would be immune to the changes.
Shein did not immediately respond to a request for comment.
It is not just Shein, though. The expected revenue hit from tariffs and the prospect of restrictions on investing in certain types of Chinese companies down the road will weigh on valuations of initial public offering (IPO) prospects, according to Mr Gary Ng, a senior economist at Natixis.
Some of these companies planning to go public “may decide that they would wait and see first”, Mr Ng said. If the policies affect valuations, many Chinese companies may delay their IPO plans, he said.
Some Chinese firms have been weaving in trade tensions in their IPO filings, such as drugmaker Shanghai Bao Pharmaceuticals. It said in its January listing application that any retaliatory trade action from the US could hurt its business. BLOOMBERG
