Online fast-fashion giant Shein has cleared its listing hearing with the Hong Kong stock exchange, according to people familiar with the matter, bringing it a step closer to an initial public offering (IPO) after attempts to float in New York and London stalled.

The Singapore-headquartered company, founded in China, attended its listing hearing with Hong Kong Exchanges and Clearing (HKEX) on Thursday, sources said.

HKEX declined to comment on individual listings, while Shein did not immediately respond to a request for comment on Friday.

The hearing clearance comes just days after the China Securities Regulatory Commission (CSRC) greenlit Shein’s plans to issue up to 341.6 million shares and list in Hong Kong.

Shein had previously sought to go public in New York or London, according to earlier reports by the South China Morning Post and other media outlets, but those ambitions were derailed by intense US and European regulatory scrutiny over its supply chain practices and tax structures.

Regulatory headwinds, alongside prolonged IPO delays, have severely dented the unicorn’s valuation. After peaking at about US$100 billion in 2023, Shein’s valuation has halved to between US$40 billion and US$50 billion ahead of the planned float, according to two other sources.