The CEO of the London Stock Exchange Group has denied allegations of lowering standards to attract Shein’s £50bn IPO to London, amid concerns over the retailer’s supply chain practices and allegations of forced labor. Shein, originally planning to list in New York, faced opposition due to labor malpractice concerns and lawsuits. However, it has yet to face formal opposition in the UK.
LSEG CEO David Schwimmer emphasized that there is no compromise on standards for listings on the London Stock Exchange, as companies must meet the requirements set by the UK listing authority. He highlighted the benefits of the disclosure and governance regime in the UK for listed companies.
Shein has faced criticism for its supply chain practices, including allegations of forced labor in Xinjiang, China, and design appropriation issues. Despite the controversy, the company has filed papers to float on the London Stock Exchange and gained support from the Labour party.
The UK regulator recently loosened rules for listed companies in an effort to attract more listings and prevent companies from leaving the London Stock Exchange for other financial hubs. Critics have raised concerns about a potential erosion of shareholder democracy due to the rule changes.
Schwimmer expressed optimism about the listing pipeline in the UK, attributing the positive outlook to factors like the resolution of the UK general election and improving macroeconomic environment. He highlighted the encouraging direction for further share flotations in the UK market.
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