LSEG CEO David Schwimmer addressed the concerns by telling news publication The Guardian: “To be clear, there is no lowering of standards on the London Stock Exchange.”
Schwimmer explained the listing approval process is conducted through the UK listing authority, emphasising that companies meeting the required disclosures around governance are eligible to list on the London Stock Exchange.
The statement comes after Singapore headquartered Shein moved from its planned New York listing to filing papers for a London IPO in June, to which it secured support from the Labour Party just weeks before the July election
While not commenting directly on Shein’s London listing, Schwimmer highlighted the benefits of listing on the London Stock Exchange. He noted the exchange’s governance and disclosure regime tends to be “very good for companies in terms of having the disclosure and the scrutiny and the investor participating in how they are managed.”
Schwimmer added there is an “encouraging listing pipeline” and that the prospect for further share flotations was “looking up, certainly here in the UK.” He attributed this positive outlook to several factors, including the resolution of the UK general election, an improving macroeconomic environment, and recent capital markets reforms.
In the US lawmakers have alleged the fast-fashion giant has links to the Xinjiang Uyghur Autonomous Region (XUAR) in China which has been the subject of forced labour claims for some time.
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By GlobalData
Last year, a coalition launched with a clear aim to “shut down Shein” to “protect Americans”. The campaign aimed to educate the US government and the public on how the fast fashion giant allegedly abuses human rights and exploits import laws.
Shein refused to comment when contacted by Just Style, however a Shein spokesperson previously shared it “has a zero-tolerance policy for forced labour” and “is committed to respecting human rights”.
The spokesperson added: “We take visibility across our entire supply chain seriously and we require our contract manufacturers to only source cotton from approved regions.”
