Shein, the Chinese-founded fast-fashion giant, is set to float on the Hong Kong stock exchange next week rather than in London, after intense but ultimately unsuccessful courting by UK politicians and financial regulators. Columnist Nils Pratley argues this is a lucky escape for the London market, given Shein's evasive answers to MPs over its supply chain practices and a valuation that has since shrunk considerably, suggesting the "prize" was never as attractive as it seemed.

The company had already been rejected as a listing candidate in New York amid US-China tensions and scrutiny of its labour practices, making London a fallback option that UK politicians and the Financial Conduct Authority nonetheless pursued eagerly. Momentum collapsed after Shein's European general counsel stonewalled the Commons business select committee in January last year over questions about Chinese cotton sourcing and links to Xinjiang, prompting chair Liam Byrne to accuse the firm of near-contempt. Shein's Hong Kong valuation of $27bn (£20bn) is far below the £50bn once floated for a London listing, reflecting both governance concerns and the wider crackdown on "de minimis" tax breaks for low-value imports from China, which the US has already scrapped and the UK plans to end by 2029.