Shein under data policy microscope before planned IPO: WSJ

The news: Regulators in China will investigate Shein's data handling practices amid national security concerns, as the fast fashion juggernaut seeks approval for a New York listing, the Wall Street Journal reported, citing unnamed sources.

The Cyberspace Administration of China will scrutinise Shein's data policies around staff, suppliers and partners in China, and whether it can protect such information from leaking abroad. Beijing is also reportedly interested in what data will be shared with the US Securities and Exchange Commission.

The numbers: Shein has not revealed the size of the initial public offering, but the company was estimated to be worth USD60 billion ($91.5 billion) in mid-2023 and Bloomberg has reported it was targeting up to USD90 billion in the float.

The context: Shein requires approval from regulators in China to be listed overseas. Ride-hailing company Didi faced a similar test before its USD4.4 billion IPO in 2021. In the same year, TikTok parent company ByteDance shelved plans to go public after Chinese regulators advised it should improve data security risks.