Shein could be forced to accept a valuation below $30bn (£22.4bn) for its long-awaited stock market debut as investors push back on the fast fashion giant’s proposed price tag.

The retailer’s upcoming Hong Kong IPO is being pitched to prospective investors at a valuation in the mid-to-high $20bn range, according to the Financial Times.

The figure would represent another significant downgrade for Shein, which was valued at $98.2bn during a funding round in 2022 and had been targeting a valuation of between $30bn and $40bn for the Hong Kong float as recently as last week.

The FT reported that investor interest had emerged below Shein’s internal $30bn floor, potentially requiring the retailer to consult existing shareholders should it decide to proceed at the lower valuation.

Shein’s reduced expectations come as the online fashion giant battles weaker growth, tougher international trade rules and rising competition.

Its recently published Hong Kong listing documents revealed that revenue increased eight per cent to $41.8bn in 2025, but net profit plunged 38.7 per cent from $3.37bn to $2.06bn. The retailer subsequently slipped to a $99m net loss during the first quarter of 2026, compared with a $395m profit a year earlier.

Shein has also been hit by the removal of the US de minimis exemption for low-value Chinese imports, while similar changes in Europe are expected to increase costs.

The retailer said the US changes had negatively affected sales and revenue growth, with US first-quarter revenue falling from $2.38bn to $2.04bn year on year.

The Hong Kong float marks the latest chapter in Shein’s prolonged efforts to go public after previously pursuing listings in New York and London. Its plans have faced heightened regulatory and political scrutiny, including questions over its supply chain and sourcing practices.

The retailer has received approval from Chinese regulators to progress with its Hong Kong listing, which could launch as early as this month.