Lawmakers intensify examination of Shein as IPO filing raises concerns


(MENAFN) Lawmakers are intensifying their examination of Shein following its confidential filing for an initial public offering last week.

A member of Congress who holds a position on a crucial committee is now considering the possibility of introducing legislation to prevent the retailer from trading if the U.S. Securities and Exchange Commission does not reject its application.

On Tuesday, Rep. Blaine Luetkemeyer, R-Mo., posted a video speech declaring that Shein “warrants extreme caution from regulators, customers and investors” as the industry leader in fast fashion gets ready to begin trading on American exchanges as early as 2024.

During an interview with a media outlet based in the United States, he argued that the SEC must "do their job" and hinder Shein from trading on U.S. exchanges due to accusations involving the retailer's use of forced labor and exploitation of U.S. trade regulations.

“Urge the SEC to apply maximum scrutiny to Shein’s business and management before letting it anywhere near our capital markets,” Luetkemeyer declared in the video.

“Accessing U.S. markets and capital is a privilege and we rely on the SEC to root out undeserving companies,” he added. “I sincerely hope the officials at the commission will review Shein to ensure American capital does not fund crimes against humanity.”

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