Blouse on the Stock Exchange: Shein attempts IPO in China. And Brazilian retailers are watching closely.

After unsuccessful attempts in New York and London, the online fast-fashion retailer Shein is finally moving towards going public. After almost two years, the company received approval from the China Securities Regulatory Commission (CSRC) to proceed with its initial public offering ( IPO ) in Hong Kong .

The listing is expected to begin between September and October. The company is expected to seek a valuation of US$40 billion to US$50 billion. This is well below the US$100 billion valuation obtained in a private funding round in 2022, but it would still place it among the most highly valued fashion retailers in the world.

According to BTG Pactual, the company's strategy will have an impact on the Brazilian market. The trend is that, with the influx of more resources, the platform will gain an even greater advantage, in terms of price, over national retailers such as Renner , C&A , and Riachuelo .

"The transaction should reinforce the strategic importance of one of the fastest-growing fashion platforms in the country. Shein continues to maintain a significant double-digit price advantage over publicly traded Brazilian apparel retailers," says the bank's report.

In the financial institution's view, the company managed to adapt to the scenario established in Brazil in 2024 with the implementation of the "blouse tax," which consisted of applying a 20% import tax to purchases of up to US$50.

With the repeal of the fee in May of this year, determined by the federal government itself, which was the entity that created the fee, the trend, according to BTG, is that Shein's competitive advantage, which was already significant, will continue to expand.

After implementing the program, the company adjusted prices, expanded local sourcing initiatives, and optimized its logistics network precisely to maintain competitiveness in the national market.

“For Brazilian e-commerce, Shein's IPO reinforces the idea that international competition is becoming increasingly structural, not cyclical. The company still maintains a significant price advantage over local apparel retailers, suggesting that competitive pressure is unlikely to diminish.”

BTG analysts believe that Brazil has become one of the clearest examples of Shein's operational flexibility, considering its entire global presence.

"The repeal of the federal tax on eligible international purchases created a more favorable operating environment, allowing growth to accelerate again," add analysts Luiz Guanais, Yan Cesquim, and Beatriz Cendon, who authored the report.

But in practice, the elimination of the tax generated enormous friction between the federal government and the major fashion companies operating in the Brazilian market.

In May, NeoFeed revealed that Riachuelo was evaluating staff cuts and the implementation of a cross-border model after the end of the measure.

"If we come to the conclusion that this decision to eliminate the tax on blouses will be maintained, we will have to start laying people off. There's no miracle cure," said André Farber, CEO of Riachuelo, at the time.

According to BTG, Shein's monthly active user base in Brazil grew 34% in the second quarter of 2026, compared to the same period last year.

This represents the largest growth recorded among the main e-commerce platforms analyzed by the bank. During the same period, AliExpress grew by 27%; Mercado Libre, 17%; Amazon, 16%; and Shopee advanced by 9%.

"The combination of aggressive pricing, localized execution, and a highly responsive supply chain continues to attract the price-sensitive Brazilian consumer base," the bank states.

According to analysts, the next phase of the competition, particularly in Brazil, will be defined by the strength of the ecosystem, logistical efficiency, creator-led commerce, marketplace monetization, and product discovery driven by artificial intelligence (AI).

In this sense, BTG sees Brazilian e-commerce as one of the most attractive in the world in the long term. This explains the concern arising from the advancement of the Asian platform.

Shein's IPO in Hong Kong would consolidate an IPO journey that floundered in its first two attempts. In November 2023, the company filed for an IPO in the United States, but faced resistance from regulatory bodies.

Shein then targeted London in June 2024. Although the UK's Financial Conduct Authority had a draft prospectus, the Services Trade and Industry Regulatory Commission (CSRC) blocked the move.

Founded in 2008 by Xu Yangtian in the Chinese city of Nanjing, the company is now headquartered in Singapore, sells to more than 160 countries, and generates annual revenue of approximately US$38 billion.