Watch now as China analyst Felix Wang discusses the latest news surrounding global e-tailer Shein’s upcoming IPO. With a potential $100 billion valuation in the private markets, Wang explains how Shein’s success could positively impact various Chinese IPO’s going forward.
“I think that IPO is stalled because of regulatory issues on both sides of the world. I mean, obviously, it's still a Chinese company, even though all of its operations are outside of China. But I'm happy to see that things are moving along,” notes Wang. “A hundred billion. That's an incredible multiple that the private investors are placing onto this name.”
“This morning, Chinese stocks are up another 5% again on the delisting issue, because the China equivalent of the SEC (the CSRC), basically removed a key hurdle that will allow the SEC regulators to have full access to the books of the Chinese companies listed in the US. So one of the requirements they scrapped was so-called ‘onsite inspections’ that were going to be conducted by the Chinese regulators. It's good to see that this is moving forward in a more of a cooperative manner. I still believe that the chance of it delisting is at 1%. I'm going to keep my word to that.”
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