Shein could be forced to accept a lower valuation for its long-awaited Hong Kong float as new European import charges weigh on sales and profits.

The online fashion giant is targeting a valuation of between £30bn and £37bn, less than half the approximately £74bn price tag it secured during a 2022 funding round.

However, some investors believe Shein may need to lower its expectations further amid slowing growth and increasing regulatory scrutiny of Chinese ecommerce businesses.

One investor suggested a valuation closer to £22bn could make the company more attractive, citing intense competition and the effect of new European import charges.

The EU introduced a customs fee of approximately £2.55 on low-value ecommerce imports this month as part of efforts to tackle what it regards as unfair competition from China.

The charge applies to each customs category within parcels worth less than £128. An order containing five different types of product could therefore incur almost £13 in additional duties.

Europe accounts for around a third of Shein’s revenue and is considered particularly vulnerable to the change because of its price-sensitive customer base.

Shein has responded by expanding its warehouse capacity in Wroclaw, Poland, allowing popular products to be shipped into the bloc in bulk. It has also reduced European advertising expenditure while assessing how shoppers respond to higher prices.

The company generated more than £30bn in global sales and almost £1.5bn in net profit last year, according to confidential figures cited by Reuters.

Its latest Singapore filing showed revenue of approximately £27.5bn and profit of £958m in 2024.

Shein is sounding out potential investors ahead of a public filing expected by the end of July and is targeting a Hong Kong listing in September.

The float follows unsuccessful attempts to list in New York and London as the retailer faced political and regulatory obstacles in both markets.

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