Shein shares fell as much as 10% on their long-awaited debut on the Hong Kong stock exchange, a rough start for one of the biggest fashion listings in years. The company priced its shares at HK$48.56 and raised HK$13.6bn, but minutes after trading began its valuation had slipped below $25bn.
The listing was meant to give Shein a public market home after earlier plans in New York were blocked by regulators over forced labour concerns and a London flotation also came under consideration. The debut came after years in which the company was once valued at almost $100bn, and the gap between that figure and Tuesday’s offer price was stark.
That gap matters because Shein’s business has been built around moving large volumes of clothing in small packages out of China and into markets that had offered lighter tax treatment for low-value imports. That model is now under pressure from several sides: the US removed its de minimis import duty exemption on small packages, the EU introduced a €3 duty on small parcels imported from outside the bloc in June, and the UK has said it will phase out the loophole by October 2028.
The valuation slide also landed against a weaker financial backdrop. Shein swung to a loss of $99m in the first three months of this year, compared with net income of $395m a year earlier. The company, founded by Chris Xu and now headquartered in Singapore, moved most of its operations to China while selling its goods outside the country, a structure that helped fuel its rapid rise and now leaves it exposed to changing trade rules.
There is also a wider credibility problem. After forced labour concerns were raised, Shein said it had tightened supplier policies and that any child or forced labour breach would mean immediate contract termination. The stock closed 4% below its offer price at HK$46.62, and the early trade suggests investors are still weighing the company’s scale against the risks attached to the way it sells Shein clothes around the world.
At the listing ceremony, Leigh Gui struck the gong and said, “Let global consumers enjoy the sound of fashion.” By the close, the market had answered with a quieter message: the debut was real, but the reset in Shein’s valuation is not over.
