LONDON/HONG KONG: Shein Executive Chairman Donald Tang is set to step down as the fast-fashion retailer moves closer to completing its Hong Kong initial public offering, with the longtime executive expected to transition into a senior advisory role, according to three sources familiar with the matter.

Tang, who has served as Shein's public face for the past three years, is expected to continue working closely with the company's management team. One source said there is no fixed timetable for the transition.

His departure comes after Chinese regulators approved Shein's planned Hong Kong listing, bringing the company closer to going public following unsuccessful attempts to list in New York and London.

Shein declined to comment and did not respond to questions about who would assume Tang's responsibilities. One source said founder Sky Xu, rather than Tang, is expected to lead the investor roadshow ahead of the listing.

Tang, a Chinese-American billionaire who began his career in banking, was recruited because of his experience managing businesses between China and the United States and his connections in finance and politics. He has represented the company in discussions with regulators and politicians while serving as the public face of the retailer at conferences and other events.

According to one source, Tang was introduced to Xu by Neil Shen, founding and managing partner of HSG, formerly Sequoia Capital China. Shen did not immediately respond to a request for comment.

Tang initially led Shein's efforts to pursue a New York stock market listing, including lobbying policymakers in Washington. During that effort, he publicly supported ending the U.S. "de minimis" customs duty waiver as scrutiny of the company's business model increased.

He also defended Shein against allegations that its Chinese supply chain was linked to forced labor, accusations Beijing has denied.

After plans for a New York IPO were abandoned, Shein turned to London, but that effort also failed after China's securities regulator withheld approval despite clearance from Britain's Financial Conduct Authority.

According to one source, Tang hoped to leave behind stronger regulatory compliance and improved relationships with regulators.

Last year, he led an internal effort to tighten oversight after French and Italian regulators imposed significant fines on the company.

However, Shein faced renewed controversy in November after French regulators found child-like sex dolls listed on its marketplace, triggering a government crackdown just as the retailer launched its first permanent store in Paris. The promotional campaign featuring Tang and his dog, Satchi, was quickly withdrawn, and Shein later abandoned the French store initiative.