The head of the London Stock Exchange has ruled out a backlash against controversial plans for Shein to list in London, saying the criticism is pointless.
Julia Hoggett was responding to claims that the UK risks becoming a “last resort for companies with poor human rights records” if it opens the door to a £50bn float by the giant chinese online.
Hoggett declined to comment directly on the company and criticism of its labor practices.
But he said: “If companies want to come to our market, meet our standards and adhere to the level of governance standards that we have as a UK market, then I think the UK has the potential to be the home for them to raise capital.” “. ‘
Shein could file papers for an initial public offering (IPO) in London this week in a big boost for the City after a drought of companies going public.
Human rights fears: LSE boss Julia Hoggett (pictured) responded to claims the UK risked becoming a ‘last resort for companies with poor human rights records’ “.
Its previous attempts to list in New York ran into regulatory hurdles and opposition from lawmakers, who called for it to be blocked from listing unless it could verify it did not use forced labor.
Based in Singapore, Shein was founded in China and relies on suppliers in the country to make its T-shirts and dresses at discounted prices.
Some UK retail rivals are concerned that an initial public offering in London would give the company the green light to do more business in Britain.
Shein has said it is investing millions in “strengthening governance and compliance across our supply chain.”
But plans for a London IPO have sparked protests from companies such as fund manager CCLA, which warned of the risk of the British market “lowering its standards” to allow the entry of companies “with doubts about them.” “.
But Hoggett told the Mail: “I don’t understand that narrative.”
He noted that any company listed in London would have to meet a number of regulatory standards and an investor base “with a significant focus on ESG (environmental, social and governance) standards”.
She said: ‘Eligibility requirements in the UK are set by our regulators to high standards and the current requirements in the UK are at least as high, particularly when it comes to corporate governance and ESG as anywhere else,’ possibly higher than in the US.
‘So it’s hard to see how that argument makes sense. We run a fairly strict system in the UK, but it is a rules-based system. It is not subject to non-regulatory evaluations. That has always been one of the strong points.
‘The FCA (the City watchdog) has a set of rules to apply and they will apply them and they will do so without fear or favour. That is the principle and that is how sustainable, predictable and credible markets work.’
Peter Hugh Smith, chief executive of CCLA Investment Management, said the listing was “problematic and risks causing damage”.
“Anyone who has a pension fund will be passively involved in its actions through the allocation of capital,” he said.
The UK Sustainable Finance and Investment Association, a group of senior fund managers, has warned that London is becoming a “last resort”.
