Donald Tang, executive chairman of Shein, the global fast-fashion retailer, is preparing to step down as the company nears its public offering, according to sources with first-hand knowledge of the situation. Tang has been the public face of the company for the past three years, acting as a Western representative for Shein’s founder and CEO, Sky Xu.
Tang, a Chinese American billionaire with a background in banking, has worked closely with Xu, interacting with politicians, regulators, and investors globally and representing the e-commerce giant at conferences and public events.
As Tang steps down, CEO Sky Xu is set to assume the role of chairman and will spearhead the investor roadshow before Shein’s listing on the Hong Kong stock exchange. The company’s hearing with the exchange is scheduled for this Thursday.
Tang will maintain a close relationship with the company’s leadership as a senior adviser for the foreseeable future, a source revealed. Despite his considerable contributions, Tang’s name will not appear in Shein’s public filing among the company’s top leadership, the sources noted.
Initially, Tang aimed to list the company in New York and even relocated to Washington, D.C., to lobby politicians. However, as controversies surrounding Shein’s use of the ‘de minimis’ customs duty waiver grew, he voiced his support for removing the waiver in July 2023.
Tang has also defended Shein against allegations linking its supply chain in China to forced labor, an issue strongly denied by Beijing. Shein maintains a zero-tolerance policy towards forced labor.
Following the unsuccessful New York IPO attempt, Shein turned to London for a potential listing. Despite receiving approval from Britain’s Financial Conduct Authority, the plan fell through due to the China Securities Regulatory Commission withholding its approval. As a result, the company decided on a Hong Kong listing.
What has been Donald Tang’s role at Shein?
Donald Tang has acted as the Western representative of Shein, liaising with global politicians, regulators, and investors, and representing the company at public events.
Who will take over the role of chairman once Tang steps down?
The current CEO of Shein, Sky Xu, will assume the role of chairman as Tang steps down.
What were the challenges faced by Shein in their previous attempts at an IPO?
Shein initially planned for an IPO in New York but faced criticism over its use of the ‘de minimis’ customs duty waiver. The company then pivoted to London, but the IPO was halted due to the China Securities Regulatory Commission withholding its approval. This led Shein to opt for a listing in Hong Kong.
