Shein, the fast fashion giant, has faced another setback in its much-anticipated initial public offering (IPO). The company’s plan to list in London was blocked by Chinese regulators, leading Shein to now focus on a Hong Kong listing instead.

A London IPO was seen as important for gaining international credibility and attracting Western investors. However, experts were not surprised by the change, given the intense scrutiny Shein faces over its business practices.

Shein has been criticized for alleged forced labor in its supply chain, which it denies, and it shifted from a planned New York listing to London after opposition from U.S. lawmakers. Recently, the European Union found Shein guilty of breaking consumer protection laws by using fake discounts and misleading customers about sustainability.

New trade rules closing loopholes on low-cost goods in the U.S. and potentially in Europe and the U.K. add more challenges for the company.

The move away from London is a disappointment for the city, which hoped the listing would boost its weak IPO market. Some worry that Shein’s controversial reputation could have negatively influenced investor confidence.

Shein’s valuation was also under pressure, with reports suggesting a drop from $50 billion to about $30 billion if it listed in London. Moving to Hong Kong might help the company get a higher valuation.

Overall, while listing in Hong Kong is a positive for the market, Shein’s troubles mean this is not yet a turning point for the company or its investors.