According to multiple media reports, Chinese fast fashion retailer Shein is reportedly taking steps to go public in the United Kingdom, potentially providing a much-needed boost to London's struggling main stock exchange. Sky News reported on Sunday that Shein is preparing to file a prospectus with the UK's Financial Conduct Authority for approval, ahead of a potential initial public offering (IPO) that would value the company at around £50 billion ($64 billion).

If Shein proceeds with the listing, it is expected to seek to raise over £1 billion ($1.3 billion) from the sale of new shares. Bloomberg and the Financial Times have also reported that Shein is preparing a confidential filing for a London listing. However, a spokesperson for the company declined to comment on the reports.

The UK's Labour Party, which is widely anticipated to win next month's general election, stated that it had met with various companies, including Shein, who are considering investing or listing in Britain. The party emphasized the importance of maintaining the highest regulatory standards and business practices for any company operating in the UK.

Shein, headquartered in Singapore, had initially aimed to go public in New York, but faced opposition in the United States over potential national security implications. Republican Senator Marco Rubio had urged officials to block Shein's IPO in the country unless it made significant disclosures regarding its connections with the Chinese government.

While Shein initially favored a New York listing, plans for such a move have become unlikely due to regulatory concerns. Susannah Streeter, an analyst at Hargreaves Lansdown, stated that ethical concerns around Shein's business practices, including supply chain transparency and the production of large volumes of inexpensive clothing, might affect investors in the UK.

If Shein goes public in the UK, it would be a significant achievement for the London Stock Exchange, which has witnessed several companies departing for other cities or choosing New York for their IPOs. In March, concerns about London's standing were reinforced when Shell CEO Wael Sawan suggested the energy giant might seek a higher stock valuation in the United States. However, Sawan later clarified that moving to Wall Street was not a current consideration and affirmed the company's focus on share buybacks to enhance value.

Even the slightest suggestion that Shell could leave London has unsettled the city's financial center, as the company is the second-largest constituent of London's FTSE 100 index, representing 8.2% of its market capitalization.

Overall, Shein's potential IPO in the UK offers a ray of hope in revitalizing London's stock exchange, while also presenting investors with the challenging task of weighing ethical concerns against the company's significant valuation.