China's powerful internet regulator is conducting a security review of Shein as the fast-fashion giant gears up for its highly anticipated U.S. initial public offering, CNBC has learned.
The review focuses on how Shein handles information about its employees, partners and suppliers in the region, The Wall Street Journal reported.
In 2021, Beijing launched a similar security review of ride-hailing giant Didi Global just days after it went public on the New York Stock Exchange and raised some $4.4 billion.
Following Didi's downfall, all Chinese companies seeking an overseas IPO are now subject to a security review and government approval in China.
If the reviews turn up information that doesn't sit well with Chinese regulators, they could squash the deal.
Persons:
confidentially, Shein, Drew Bernstein, Didi Global, Didi, Bernstein, they're
Organizations:
CNBC, Cyberspace Administration, China, Street Journal, CAC, Washington , D.C, Marcum, New York Stock Exchange, CNBC PRO
Locations:
U.S, China, Washington ,, Beijing, Marcum Asia, Singapore