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Exclusive-Chinese fashion retailer SHEIN revives plan for New York listing in 2022-sources

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Chinese fashion retailer SHEIN is reviving plans to list in New York this year and its founder is considering a citizenship change to bypass proposed tougher rules for offshore IPOs in China, two people familiar with the matter said.

It was not immediately clear how much the company was looking to raise from its New York debut.

The initial public offering (IPO), if finalised, would be the first major equity deal by a Chinese company in the United States since regulators in the world’s second-largest economy stepped in to tighten oversight of such listings in July.

SHEIN, founded by Chinese entrepreneur Chris Xu in 2008, first started preparing for a U.S. IPO about two years ago, but shelved the plan partly due to unpredictable markets amid rising U.S.-China tensions, the sources said.

Both sources declined to be named as the plans are confidential. A SHEIN spokesperson said the company had no plans to go public.

The Nanjing-based company is one of the world’s largest online fashion marketplaces targeting overseas consumers. The United States is its biggest market.

The sources said SHEIN founder Xu was eyeing Singapore citizenship partly to bypass China’s new and tougher rules on overseas listings. The change in citizenship, if applied for and successful, would ease the path to an offshore IPO, they said.

Neither Xu nor other SHEIN executives have applied for Singaporean citizenship, the company spokesperson said, without elaborating. Xu did not respond to Reuters queries sent via this spokesperson.

New rules issued by China’s cyberspace administration and the offshore listing filing regime to be finalised by China’s securities regulator are set to make a U.S. listing process for Chinese firms more complicated, if not lengthier.

The securities regulator’s draft rules for offshore listings targets companies where a majority of senior management are either Chinese citizens or reside in China, or whose main business activities are conducted in China.

VALUATION JUMP

SHEIN ships to 150 countries and territories from its many global warehouses, according to its website.

It made around 100 billion yuan ($15.7 billion) in revenue in 2021, taking advantage of the pandemic that shifted global consumption online, said one of the sources and another person with knowledge of the matter. Its valuation was around $50 billion in early 2021, they said.

The valuation is estimated to have as much as doubled in the past year, one of the first two sources said.

The company, whose investors include Sequoia Capital China, IDG Capital and Tiger Global, was valued at $15 billion in its last funding round in August 2020, according to CB Insights data.

According to Coresight Research, SHEIN’s estimated sales in 2020 jumped 250% over the preceding year to $10 billion, with over 2,000 items added on its website weekly.

The SHEIN spokesperson said as a private company it did not disclose financial figures.

SHEIN has hired Bank of America, Goldman Sachs and JPMorgan to work on the IPO, said the source with knowledge of the company’s valuation, and another person familiar with the matter.

 

(Reporting by Kane Wu and Scott Murdoch in Hong Kong, and Fanny Potkin in Singapore; Additional reporting by Sophie Yu in Beijing; Editing by Sumeet Chatterjee and Stephen Coates)

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World's fastest passenger jet goes supersonic in tests – CNN

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YYJ delays: RCMP called to Victoria International Airport | CTV News – CTV News VI

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Travellers who have a flight planned at Victoria International Airport (YYJ) on Tuesday are being warned of travel disruptions due to police activity.

Sidney/North Saanich RCMP say the airport was closed after a suspicious package was discovered around 1:30 p.m.

Cpl. Andres Sanchez of the Sidney/North Saanich RCMP says that the airport was closed to all incoming and outgoing flights “out of an abundance of caution.”

He said the airport will remain closed until police “can be sure it is safe for the public to travel.”

‘INCENDIARY DEVICE’

“The package was located at the departures/check-in [area], so it was brought in by a passenger,” said Sanchez Tuesday afternoon.

The package was flagged by Canadian Air Transport Security Authority (CATSA) staff who spotted what appeared to be an “incendiary device” within a bag, he said.

“CATSA employees performed the checks that you normally do at a departure situation at the airport,” he said.

“They scanned the bag and found there were items inside that could be of a dangerous nature and at that point police were called to the scene to investigate further,” he said.

Mounties say a specialized RCMP team has been called in from the mainland to remove the bag from the premises and to “ensure the package is dealt with in a safe manner.”

PASSENGER UNDER INVESTIGATION

Sanchez says the individual who brought the bag is under investigation, but it’s unclear if any criminal charges will be recommended yet.

“Again, because we don’t know what’s in that bag we can’t speak further on that,” he said.

In the meantime, people are asked to avoid the airport for the next few hours, according to RCMP spokesperson Sgt. Chris Manseau.

Around 4:20 p.m., the airport said all scheduled commercial flights for the next two hours were cancelled.

The airport is working with airlines to keep them updated on the status of flights.

Police say they hope the airport will be able to reopen Tuesday night, but it’s uncertain how long the investigation at the property will take.

Travellers should check the YYJ website for the latest updates on their flights, according to the airport. 

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​Scotia hikes dividend, smashes Q2 profit estimates – BNN

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Bank of Nova Scotia opened earnings season for Canada’s Big Six on Wednesday with a beat and a dividend hike as profit climbed in all its major divisions other than capital markets.

Scotia said its net income in the fiscal second quarter, which ended April 30, rose to $2.75 billion from $2.46 billion a year earlier. On an adjusted basis, Scotia earned $2.18 per share; the average estimate among analysts tracked by Bloomberg was for $1.97 in adjusted per-share earnings.

The bank also announced its quarterly dividend will rise to $1.03 per share from $1.00, effective July 27.

“Continued loan growth of 13 per cent, an improving net interest margin, strong customer balance sheets, combined with prudent expense management, positions the Bank well to grow its earnings,” said Brian Porter, Scotia’s president and chief executive officer, in a release.

Profit in Scotia’s core Canadian banking division soared 27 per cent year-over-year to $1.18 billion in the latest quarter. Credit quality was a swing factor compared to a year earlier, as Scotia released $12 million from the unit’s provisions for loan losses in the most recent quarter; a year earlier, it booked $145 million in new provisions for loans that could go bad.

Scotia said it had an average of $271.8 billion in residential mortgages on its Canadian loan book during the fiscal second quarter, up almost three per cent from the prior quarter.

Growth in Scotia’s international division was even more pronounced, as net income surged 44 per cent year-over-year to $605 million as provisions for loan losses fell and revenue climbed.

Scotia’s Global Banking and Markets division was a profit drag, as net income slumped six per cent year-over-year to $488 million, which the bank attributed to higher non-interest expenses and lower non-interest income.

In a report to clients after the results were released, Barclays Analyst John Aiken said he doesn’t think Scotia will be an outlier with the profit slump in its capital markets business.

However, Aiken did flag that the drop in Scotia’s Common Equity Tier 1 capital ratio to 11.6 per cent from 12.0 per cent in the previous quarter might not sit well with investors.

“The only real knock on the results will likely be Scotia’s lower-than-peer regulatory ratio, which was drawn down again from share repurchases. While we believe that [Scotia] is heading towards a much more efficient capital level, the market does not like outliers, particularly where capital and an uncertain outlook is concerned.”

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