Shein shares fell on their long-awaited Hong Kong stock market debut, as investors weighed up rising costs, regulatory pressure and slowing growth at the fast fashion giant.
The online retailer, which has built a global customer base through ultra-low prices and rapid product turnaround, listed in Hong Kong. Previous attempts to float in the US and UK failed to progress amid scrutiny of its supply chain, labour practices and environmental impact.
Shein priced its shares at HK$48.56 each, raising HK$13.6bn (£1.3bn) and giving the business a valuation of around $26.3bn (£19.5bn). The figure marks a steep fall from the near-$100bn valuation it was once reported to have achieved in private markets.
Shares dropped by as much as 10 per cent in early trading before paring some losses. By lunchtime, the stock was trading around 3.5 per cent lower at just under HK$47.
The weak start underlines the challenges facing Shein as higher tariffs, logistics costs and tougher regulation put pressure on the low-price model that helped fuel its rapid rise.
At the company’s listing ceremony, chief financial officer Leigh Gui said Shein’s network now reaches around 160 markets worldwide, adding: “Let global consumers enjoy the sound of fashion.”
However, analysts said investors remained cautious despite the sizeable reset in Shein’s valuation.
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Saxo chief investment strategist Charu Chanana told the BBC the debut suggested the market was not yet convinced Shein could return to its former pace of growth.
Shein said in filings ahead of the listing that it had more than 273 million active customers, who placed more than one billion orders in the year to the end of March 2026.
But the retailer is facing intensifying competition from rival platforms, tougher trading conditions and mounting scrutiny over the sustainability of ultra-fast fashion.
Chanana added that the pressure on Shein’s cost base could make its low prices harder to maintain, raising the prospect of price rises for shoppers in key markets.
In the UK, the government is reportedly considering whether to speed up parts of its crackdown on low-value imports used by Shein and Temu.
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