Shein under investigation by US watchdog amid Hong Kong IPO process

Shein has confirmed that it is under investigation by US regulators under the Federal Trade Commission (FTC) as it continues to pursue an IPO listing on the Hong Kong Stock Exchange.

The Chinese fast fashion giant disclosed the development, which impacts its US business, in a regulatory report filed in connection with its planned IPO, however did not state what the investigation was regarding.

“The outcome of the investigation, whether in settlement or otherwise, may require us to make significant monetary payments that could have a material adverse effect on our financial condition and results of operations,” the company stated.

An FTC spokesperson has since confirmed to multiple media outlets that it is conducting a consumer investigation into Shein.

The latest regulatory filing forms part of the Hong Kong listing process for Shein, which also reported softening profitability and decelerating revenue growth in the report. The company recorded a net loss of 99 million dollars in the first quarter of 2026, contrasting a net profit of 395 million dollars seen in the same period of the year prior.

The e-tailer is seeking an IPO in Hong Kong after encountering obstacles in efforts to list in New York and London, specifically related to allegations against its supply chain and business practices.