BEIJING - China's Cyberspace Administration (CAC) is currently reviewing fast-fashion giant Shein's data management practices. This move is part of a broader effort by Chinese regulators to ensure the security of personal and supply chain data, which is especially crucial as the company eyes a potential initial public offering (IPO) in the United States.
The CAC's security review is focused on preventing international data breaches, with a particular emphasis on protecting personnel information and supply chain operations within China. The scrutiny of Shein's data practices comes at a time when the Chinese government is increasingly vigilant about the overseas listings of its domestic companies. This vigilance has been highlighted by the recent regulatory actions taken against Didi Global, which faced forced delisting from foreign markets.
Shein is actively engaging with regulatory bodies to navigate these challenges and is seeking pre-IPO approval. The company's cooperation with the CAC is indicative of its commitment to securing a smooth transition to public markets. By taking these steps, Shein aims to safeguard shareholder interests and uphold investor confidence amidst the complex landscape of global market regulations.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.