HONG KONG — Shein’s shares tumbled 10% in early trading on Tuesday as the fast-fashion giant debuted on the Hong Kong Stock Exchange, capping a years-long effort to go public. The stock opened at HK$48.56 per share, the final IPO price, before dropping to HK$43.80. The company raised $1.7 billion in the offering, valuing it at $26.5 billion—a fraction of its $100 billion peak valuation in 2022.
IPO details and market reaction
Shein’s initial public offering (IPO) was priced at the midpoint of its marketed range, with 280 million shares sold. The retail tranche was subscribed 5.63 times, while the international portion saw 2.59 times demand, according to a stock exchange filing. The shares’ decline reflects broader investor skepticism about the company’s growth prospects and operational challenges.
Leadership and strategic shifts
Shein’s Chief Financial Officer Leigh Gui addressed the listing ceremony, stating the company aims to innovate, optimize, and cooperate with supply chain partners. Founder Sky Xu did not speak at the event but later posed for photos with employees. The company plans to allocate 40% of IPO proceeds to technology, 40% to brand awareness, and the remainder to corporate responsibility and general purposes.
Financial performance and challenges
Shein reported $41.8 billion in net revenue for 2025, up from $38.7 billion in 2024. However, the company swung to a $99 million net loss in Q1 2026, compared to a $395 million profit in the same period the prior year. Analysts cited slower revenue growth, higher trade costs, and regulatory scrutiny as key concerns. The company attributed the loss primarily to fair-value losses on convertible redeemable preferred shares.
Regulatory and geopolitical pressures
Shein’s listing follows failed attempts to go public in New York and London, blocked by regulatory and political opposition. The company moved its headquarters from China to Singapore in 2021 but has since re-embraced its Chinese roots for the Hong Kong listing. Recent tariff and duty changes in the U.S. and EU have increased costs for Shein, which previously relied on the de minimis exemption for small package imports. The U.S. scrapped this exemption in May 2025, and the EU imposed a €3 duty on small parcels in July 2025.
Competitive landscape and future outlook
Investors and analysts questioned Shein’s valuation, with some noting it trades at 15 times forward earnings—more than double the multiple for rival PDD Holdings. The company faces heated competition and shifting consumer sentiment, with some suggesting its low-price model is becoming unsustainable. Shein has 273 million active customers who placed over 1 billion orders in the year ending March 2026, according to a pre-listing filing.