Influencer Editorial Team
A UK-based human rights organization, Stop Uyghur Genocide, has urged the Financial Conduct Authority (FCA) to block the Chinese fast-fashion retailer Shein’s planned listing on the London Stock Exchange (LSE). The group alleges that Uyghur people are being used as forced labor at some of Shein’s cotton suppliers in the Xinjiang region of China.
Represented by the law firm Leigh Day, the campaign group has formally written to the FCA to argue against Shein’s LSE listing. The company, valued at $66 billion in a recent fundraising round, initially planned to list in New York but faced opposition from US politicians, leading it to explore a listing on the LSE instead.
On Tuesday, Amnesty International UK labeled Shein’s potential London listing as a “badge of shame” due to the firm’s “questionable” labor and human rights standards. Shein responded, stating, “Shein has a zero-tolerance policy for forced labor and we are committed to respecting human rights. We take visibility across our entire supply chain seriously and require our contract manufacturers to source cotton only from approved regions.”
Stop Uyghur Genocide highlighted that the US Securities and Exchange Commission had previously declined to recommend Shein’s listing due to concerns about labor practices. The group emphasized that the UK’s commitment to International Labour Organization conventions, which set minimum standards for worker engagement, should prevent Shein’s listing.
“The FCA has a statutory duty of integrity and to protect its investors,” the group stated. Ricardo Gama, a solicitor from Leigh Day representing Stop Uyghur Genocide, added, “Stop Uyghur Genocide expects UK financial institutions to uphold the high ethical standards that they pay lip service to and to ensure that London isn’t the place for a ‘no questions asked’ approach to capital.”
The campaign group is preparing a detailed submission to support its letter to the FCA. Meanwhile, their lawyers have requested that the FCA obtain more information from Shein regarding the accuracy of its published modern slavery statement. Under the Modern Slavery Act, large businesses must publish an annual statement detailing measures taken to prevent slavery and trafficking in their operations and supply chains.
Rahima Mahmut, executive director of Stop Uyghur Genocide, expressed deep concerns about Shein’s potential listing, citing connections to human rights abuses, including modern slavery. “Our investment community must not support companies like Shein that are reportedly linked to the Chinese state and may enable ongoing genocidal policies against Uyghurs,” Mahmut said.
The FCA has declined to comment on Shein’s potential listing, noting it lacks investigation or enforcement powers concerning alleged breaches of legislation outside its remit, such as the Modern Slavery Act. Before a company’s shares can be admitted to the LSE, the firm must apply to the FCA for admission to listing and approval of its prospectus. The FCA emphasized that it is the company’s responsibility to ensure the accuracy of the information in its prospectus.
Michael Polak, barrister and chair of Lawyers for Uyghur Rights, stated, “A firm alleged to have involvement in goods produced by slave labor in the Uyghur region creates a risk that those vital principles will be violated. We will ask the FCA to consider the expert evidence we provide before deciding on a public listing in the UK.”
