LONDON/HONG KONG — Shein Executive Chairman Donald Tang will step down as his mission of taking the company public nears completion, three sources with direct knowledge of the matter said on Monday, after three years as the public face of the global fast-fashion retailer.
A Chinese American billionaire who began his career in banking, Tang has acted as the Western representative of secretive Shein founder and CEO Sky Xu, liaising with politicians, regulators and investors around the world, and representing the e-commerce group at conferences and other public events.Xu will take on the role of chairman, according to one of the sources, and will lead the investor road show ahead of Shein’s listing in Hong Kong.The company’s hearing with the Hong Kong stock exchange is set to take place on Thursday.Tang, 63, will continue to work closely with the management team, as a senior adviser, for the foreseeable future, said another source with knowledge of the company’s thinking, adding that there is no fixed timetable for the transition.In Shein’s filing, which should be made public in the coming weeks, Tang will not be mentioned among the company’s leadership, according to one of the sources. They all declined to be identified as the information is not public.IPO attempts in New York and LondonTang’s initial mission was a New York initial public offering (IPO), with a move to Washington, D.C., to lobby politicians. As criticism of Shein’s use of the “de minimis” customs duty waiver increased, he sought to get ahead of the issue in July 2023 by coming out in support of removing the waiver.He also sought to defend Shein’s reputation when lawmakers alleged its supply chain in China had links to forced labor, a highly contentious issue for Beijing, which denies any abuses.Shein says it has a zero-tolerance policy on forced labor.After the attempt at a New York listing failed and Shein pivoted to London, Tang became a frequent guest at five-star hotel The Peninsula next to Hyde Park, often bringing his dog, a teacup Australian Shepherd called Satchi.But the London attempt also failed as the China Securities Regulatory Commission withheld its approval even after the IPO was given the green light by Britain’s Financial Conduct Authority, forcing the company to shift to a Hong Kong listing.
