Exclusive: Shein Executive Chairman Steps Down as IPO Nears Completion

Leadership Transition at Shein

Shein Executive Chairman Donald Tang is set to step down as the company nears the completion of its mission to go public, according to three sources with direct knowledge of the matter. This comes after three years of Tang serving as the public face of the global fast-fashion retailer.

Tang, a Chinese American billionaire who started his career in banking, has acted as the Western representative of Shein’s founder and CEO, Sky Xu. He has been responsible for liaising with politicians, regulators, and investors around the world, as well as representing the e-commerce group at conferences and other public events.

According to one of the sources, Xu will take on the role of chairman and lead the investor roadshow ahead of Shein’s listing in Hong Kong. The company’s hearing with the Hong Kong stock exchange is scheduled for Thursday.

Tang, 63, will continue to work closely with the management team as a senior adviser for the foreseeable future, according to another source. 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. All sources declined to be identified as the information is not public.

Shein has not commented on the chairman transition or responded to questions about it.

Tang, who is based in Los Angeles, was introduced to Xu by Neil Shen, founding and managing partner of HSG, formerly Sequoia Capital China. He was chosen for the role due to his China-U.S. dealmaking experience as former CEO of Bear Stearns Asia and his connections in finance and politics. Shen did not immediately respond to a request for comment.

IPO Attempts in New York and London

Tang’s initial mission was a New York 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 worked 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 claims it has a zero-tolerance policy on forced labor.

After the attempt at a New York listing failed, Shein pivoted to London. During this time, Tang became a frequent guest at five-star hotel The Peninsula next to Hyde Park, often bringing his dog, a teacup Australian Shepherd named Satchi.

However, 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. This forced the company to shift to a Hong Kong listing.

Paris Sex Doll Scandal

Tang aimed to leave a legacy of tighter internal checks to remove sellers of illegal products from the marketplace and better relationships with regulators, according to one of the sources. Last year, he spearheaded an internal push to improve regulatory compliance after Shein was hit with hefty fines from French and Italian regulators.

But in November, French regulators found sex dolls resembling children being sold on Shein’s marketplace, triggering a national scandal and a French government crackdown just as Shein launched its first permanent store in the BHV department store in Paris.

Tang appeared along with Satchi on a giant poster unfurled on the BHV building ahead of the opening, which was marred by protests. After the sex doll findings, Shein temporarily suspended its platform for third-party sellers in France, then reinstated it after successfully defending against an attempt by the French government to shut it down via a court order.