LONDON (Reuters) -The chair of a British parliamentary committee wrote on Thursday to the London Stock Exchange to boost concerns about evidence given by a Shein representative at a hearing this week, and to ask how the exchange checks statements by firms trying to list.
The shortage of response by Shein’s general counsel for Europe, the Middle East and Africa to lawmakers’ questions on its supply chain at a committee hearing on Tuesday made lawmakers “profoundly concerned”, chair Liam Byrne said within the letter to the LSE CEO Julia Hoggett.
Online fast-fashion retailer Shein is working towards a London IPO in the primary half of this 12 months but has faced scrutiny over its mainly China-based suppliers and dealing practices.
Within the letter Byrne asked “what checks, if any, the London Stock Exchange has in place to authenticate statements by firms searching for to list, with particular regard to their safeguards against the usage of forced labour of their products.”
Byrne also wrote to Britain’s financial regulator, which is in command of assessing and approving stock market listings equivalent to Shein’s, asking it the way it ensures all legal risks are disclosed prior to an IPO.
(Reporting by Helen Reid, Editing by Matt Scuffham)