Shein is set to launch its £50billion stock market listing in London in the coming days despite concerns over working conditions at the Chinese firm.
The online fashion giant, which was set up in Nanjing but is now based in Singapore, could file papers as soon as this week in a major boost for the City.
London has been vying with New York for the blockbuster float which would see Shein soar straight into the blue-chip FTSE 100 index.
The Mail on Sunday revealed in April that London was the likely destination and the filing of a prospectus for regulatory approval would be the surest sign yet that the City has won out.
A listing valuing Shein at £50billion would be one of the biggest in the history of the London Stock Exchange.
The filing could occur as soon as this week, but the initial public offering (IPO) of its shares may not take place until later in the summer or in early autumn.
Chancellor Jeremy Hunt – who is under pressure to bolster the City after amid concerns over its standing as a financial centre – has met with Shein chairman Donald Tang in recent weeks.
And Labour politicians – including business spokesman Jonathan Reynolds – have also held talks with the American businessman, who was born in Shanghai but moved to the US in 1982 aged 18.
Labour, who could form the next government after the election in July, are said to be ‘very supportive’ of Shein picking London, according to The Times.
But potential investors are nervy because the company has been criticised for exploiting workers in China – as well as rapidly churning out products.
One report from advocacy group Public Eye last month revealed that some workers endure 75-hour weeks.
The UK Sustainable Investment and Finance Association has said it does not want London to ‘become a listing place of last resort for companies with poor human rights records’.
Boss James Alexander told The Mail: ‘The Chancellor should be very clear with any company who thinks it can come here to dodge human rights laws or sustainability laws. This adds extra risk to our indexes, makes us more volatile and doesn’t help the UK grow in the long term.’
He wants ministers to send a message that ‘the UK will not be bullied into taking companies that no other stock market will take’.
Shein has seen its popularity swell in recent years and profits hit £1.6bn last year after it sold £35billion of clothing.
Young shoppers have been enticed away from rivals such as Boohoo and Asos thanks to ultra-cheap prices – including less than £3 for a top or £4 for a dress.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: ‘Shein has come under significant criticism for the huge volumes of cheap clothes it produces, the lack of transparency in its supply chain and its appropriation of other designers’ work. Given these concerns, investors could be wary if ESG is on their priority list.
‘Confirmation of listing may be election campaign fodder for the Conservatives, who are likely to say it demonstrates that government efforts in wooing firms to launch in London are paying off.’
London has suffered from big names – including biotech firm Abcam and plumbing group Ferguson – ditching their listings and moving to the US. And it lost out when British chip designer Arm chose a £100billion float in New York.