Shein says it is under investigation by the U.S. Federal Trade Commission (FTC) as it prepares for a planned initial public offering in Hong Kong. The company disclosed that the FTC is investigating its U.S. business, but it does not provide details on the specific claims or the scope of the probe. Shein also warns that the investigation’s outcome could lead to significant monetary payments. The company states that any required payments could negatively affect its financial condition, depending on the findings and any resulting actions by regulators. The filings indicate that the company is preparing for the IPO while the regulatory matter remains unresolved. Shein’s disclosures focus on the fact of the investigation and potential financial exposure rather than outlining alleged conduct or expected timelines. Overall, the reports describe an ongoing FTC review with unclear particulars, paired with Shein’s public note that unfavorable results could carry material costs during a key corporate fundraising and listing period.