Shein, which is headquartered in Singapore, is poised to pursue a listing on the London Stock Exchange in the upcoming half-year contingent to receiving regulatory consent.
The UK activist group alleges that Shein’s supply chain is tainted by cotton produced through Uyghur forced labour in China.
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It asserts the FCA should reject the listing application as so-called use of forced labour in supply chains is unlawful under the Modern Slavery Act, so it says Shein would have to explain company profits in light of proceeds of crime laws.
The FCA has refrained from commenting on speculative listings, while Shein did not respond to Just Style’s request for comment but last month it maintained that it enforces a strict prohibition of forced labour within its global supply chain.
SUG has imposed a two-week ultimatum on the FCA to address its sixth formal communication in under seven months, which also marks the start of the judicial review process.
A pre-action protocol letter from SUG’s legal representatives at Leigh Day outlines the High Court action SUG intends to launch if the FCA greenlights Shein’s IPO prospectus or allows its securities onto the official list.
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By GlobalDataThis follows testimony by Shein’s attorney, Yinan Zhu, before a Parliamentary select committee. Prior to the session, SUG presented Zhu with a dossier alleging misconduct within Shein’s cotton procurement process.
Last year, SUG dispatched this same dossier to the FCA. It allegedly demonstrates a substantial risk of forced labour within Shein’s supply chain, a factor that SUG argues should preclude the retailer from listing on the LSE.
The campaign group asserts that its dossier substantiates direct connections between cotton production in the Xinjiang Uyghur Autonomous Region (XUAR) and forced labour, highlighting publicly accessible evidence linking Shein’s supply chains to cotton sourced from XUAR.
SUG maintains that any application by Shein for an LSE listing should be obstructed by the FCA due to credible suspicions regarding modern slavery within its supply chains.
To date, the FCA has disclosed that legal constraints prevent it from confirming any application submission by Shein.
Stop Uyghur Genocide executive director Rahima Mahmut said: “The decision to challenge Shein’s stock exchange listing is a crucial step toward accountability. For the Uyghur people, who are subjected to forced labour as part of China’s oppressive regime, this sends a powerful message that profits cannot come at the cost of human dignity and freedom. Companies must not be allowed to thrive on exploitation and systematic abuse. This legal challenge is not just about Shein — it’s about standing up for justice and ensuring Uyghur voices are heard.”
To support this legal confrontation, Good Law Project (GLP) has pledged backing for SUG’s cause and will assist in financing associated legal expenditures.
Good Law Project chair Jolyon Maugham said: “All regulators are facing huge political pressure from the Labour government. Here the FCA is being asked to swallow the appalling wastefulness of Shein’s practices, its opaque ownership structure, and what looks very much like its links to the exploitation of the Uyghur people.”
Previously, the United States Securities and Exchange Commission opted not to endorse Shein for trading stateside amid concerns about labour conditions within its supply chain.
