Shein’s Hong Kong IPO stumbles as shares slide on debut

Fast-fashion retailer Shein raised US$1.7 billion in its long-awaited Hong Kong initial public offering, valuing the company at approximately US$26.3 billion. The listing, however, opened on a rocky note: shares dropped from the HK$48.56 listing price to HK$43.72 shortly after trading began.

Weak market debut

The sharp early fall in Shein’s share price marked a disappointing start to its Hong Kong trading. For a company that grew into one of the world’s largest online fashion retailers by selling low-priced clothing, the weak debut was described in the source as a significant setback.

Valuation and fundraising background

The Hong Kong listing put Shein’s valuation at roughly US$26.3 billion. That contrasts with the nearly US$100 billion valuation the company held during private fundraising rounds in 2022. The company said the money raised would be used to improve its technology and expand its international operations.

Slower growth and rising scrutiny

Analysts cited in the source noted slowing revenue growth and increased attention from regulators and governments. Morningstar analyst Lorraine Tan said Shein’s revenue growth had slowed to below 10% in 2025, roughly in line with the wider fast-fashion industry. The company has faced scrutiny over environmental impact, labour practices, privacy and copyright issues, the source reports.

Company response on labour allegations

The company has repeatedly rejected allegations of forced labour.

Executive chairman Donald Tang said last year that Shein had “zero tolerance” for forced labour.

Cost pressures and changing rules

The source says changes to international trade and tariff rules are affecting Shein’s business model. In the United States, the removal of an import-duty exemption for small packages has already had a financial impact. The European Union introduced a €3 duty on items in packages worth less than €150, and France is introducing a separate charge on ultra-fast-fashion products that could rise to almost €20 per garment, the source reports.

Those additional charges are significant for a retailer built around very low-priced individual items. The source quotes e-commerce analyst Juozas Kaziukenas predicting that Shein’s near-term growth could turn negative and arguing the company needs to rethink its supply chain rather than relying heavily on sending products directly from China to customers.

Strategic shifts and China ties

The source describes a strategic shift as Shein seeks closer ties with China. Although the company moved its headquarters to Singapore in 2021–22, its Chinese roots remain central. Chief executive Sky Xu made a rare public appearance in Guangdong earlier this year and promised to increase Shein’s investment and resources in China, a move analysts viewed as strengthening the company’s relationship with its country of origin and preparing for a new phase of growth.

Where Shein stands now

The Hong Kong listing gives Shein access to fresh capital but also brings the company into public markets at a different point in its development. The source concludes that Shein is now a very large global retailer facing tougher competition, higher costs and increased scrutiny, and that investors will demand more than low prices and rapid growth before assigning the company the premiums it once enjoyed.