U.K. lawmakers urge more Shein scrutiny ahead of possible London IPO

LONDON (Reuters) -- Senior British lawmakers, including the chairs of three parliamentary committees, have questioned fast-fashion giant Shein's suitability for a London stock market listing and called for greater scrutiny of the Chinese-founded firm.

Shein is stepping up preparations for a London listing after its attempt to float in New York faced regulatory hurdles and pushback from U.S. lawmakers.

The firm, known for its $10 tops and $5 biker shorts, faced criticism from U.S. lawmakers over alleged labor malpractices, lawsuits from competitors and use of an import tax exemption.

British finance minister Jeremy Hunt held talks with Shein Executive Chairman Donald Tang in February and the firm is keen to list in London, a U.K. government source told Reuters.

Britain is keen to attract more listings after losing out on some big-name flotations to other financial centers.

However, Alicia Kearns, the Conservative chair of parliament's Foreign Affairs Committee, said Shein should not be permitted to list in London.

"With Shein's prices so low, the London Stock Exchange needs to ask itself: Whose suffering is subsiding those prices?" she said in comments first reported by The Guardian newspaper. "A company which has failed to make full disclosures about its supply chains as required by U.K. law, and where there are grave concerns about its factory working conditions, has no place in London."

Sarah Champion, the Labour chair of the International Development Committee, said serious concerns had been raised about Shein's labor practices.

"No company using modern slavery should be listed in London. Unless the allegations around Shein are addressed, we should not support their application," she said.

A spokesperson for Shein said: "Shein