Shopping behemoth Shein could list in Hong Kong as soon as next week at a cut-price valuation of £22billion. 

The fast fashion group, which was founded in China but is now based in Singapore, has had a protracted listings campaign and has previously tried to secure listings in New York and in London. 

It had pursued a £74billion valuation before it was hit by Donald Trump’s tariffs and the crackdown on tax loopholes it benefited from in the US and EU.

Over the last few years, its cheap clothes have helped entice young shoppers from the likes of Asos and Boohoo. 

Now it is targeting an IPO valuation of £22billion which could come as soon as Wednesday next week, according to sources cited by Reuters. 

The US President’s decision to scrap a ‘de minimis’ import duty exemption, which had in the past allowed firms such as Shein to ship small parcels directly to American consumers tariff-free has weighed on earnings. 

It slumped to a quarterly loss of £74million for the three months to the end of March, compared to a profit of £296million a year earlier. 

The European Union has recently taken similar action, and the UK is looking to close the small parcels loophole, too, but not for some years.

The EU and US-wide crackdowns in the EU and US mean that goods have been funnelled into the UK, which has a de minimis customs duty threshold of £135. 

The levy has faced fierce criticism from firms including Argos, Debenhams and Currys, who argue it gives the Chinese firm an unfair advantage. 

Dan Coatsworth, head of markets at AJ Bell, said: ‘Investors have been waiting for Shein’s IPO for longer than the Number 9 bus. Now it looks like the much-hyped event is about to happen, and the timing is interesting.

‘Reports suggest Shein is targeting a significantly lower valuation than its post-pandemic glory days. This is likely to reflect increased competition, a shift in the tariff and tax regime, and pressure on margins.

‘Once seen as the most disruptive force in global retail, Shein has lost its shine in recent years.

‘Reports suggest it could float in Hong Kong next week and that will be a major test for how investors now view the company.

‘Some investors wouldn’t touch Shein with a barge pole given ongoing concerns around business practices and governance standards. But others might be interested if the price is right.’

Shein's campaign for a listing on the London stock market ran aground amid human rights abuse allegations in its supply chain.

Campaigners have made allegations of slave labour in the Xinjiang region of China. Beijing has denied any abuses and Shein has said it has 'zero tolerance' to abuse in its supply chain. 

Despite the criticism, there was enthusiasm from some in the City for Shein to list as it would have been one of London’s biggest IPOs on record and help to revive the beleaguered IPO market.

Shein was given the green light to list by the UK’s Financial Conduct Authority.

But Chinese authorities are likely to have been taken aback by the intense scrutiny by MPs on the Business and Trade Select Committee.