Shein executive chairman Donald Tang is reportedly preparing to step down as the company moves closer to completing its long-awaited stock market listing.
Tang, who has served as Shein’s public face for the past three years, is expected to become a senior adviser to the business, according to sources familiar with the plans.
Founder and chief executive Sky Xu is set to take on the chairman role and lead the investor roadshow ahead of Shein’s proposed flotation in Hong Kong.
The leadership change comes after Chinese regulators approved the retailer’s Hong Kong listing, with a hearing at the city’s stock exchange scheduled for Thursday.
Shein’s regulatory filing is expected to be published in the coming weeks, although Tang is not understood to be listed among the company’s leadership team.
There is no fixed timetable for his departure and he is expected to continue working closely with senior management for the foreseeable future.
Tang joined Shein after a career in banking, including a stint as chief executive of Bear Stearns Asia, and was selected for his experience navigating political, regulatory and financial relationships in China and the US.
He played a central role in Shein’s efforts to secure a public listing, initially pursuing a flotation in New York before the retailer shifted its attention to London.
Its London IPO plans were later abandoned after the China Securities Regulatory Commission withheld approval, despite the proposed listing securing backing from the UK’s Financial Conduct Authority. Shein subsequently turned to Hong Kong.
Tang has also worked to improve Shein’s relationships with regulators and strengthen its internal compliance controls amid growing scrutiny of the retailer’s supply chain and third-party marketplace.
The company has faced allegations from lawmakers over potential links between its Chinese supply chain and forced labour, which Shein denies. It has also been hit by regulatory fines in France and Italy.
Shein faced further controversy last year after French authorities discovered childlike sex dolls being offered through its marketplace, prompting the retailer to temporarily suspend third-party sellers in France.
This marks a significant moment for Shein, as it seeks to draw a line under several failed listing attempts and persuade investors that its rapid global growth can be sustained under increasing regulatory pressure.
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