Shares in the fast-fashion brand Shein slumped by as much as 10% on Tuesday during its trading debut on the Hong Kong stock exchange. The Singapore-headquartered company, founded in China, priced its shares at HK$48.56, valuing the business at just over $26bn.
Minutes after the flotation, which raised HK$13.6bn, the stock fell, pushing the online retailer’s valuation below $25bn. By the end of trading, Shein’s share price had recovered some ground to be 4% below its offer price, closing at HK$46.62.
This debut follows a period of anticipation, with previous plans to list in New York blocked by regulators due to forced labour concerns. A potential £50bn flotation in London also faced scrutiny regarding its supply chain.
The company experienced a loss of $99m in the first three months of this year, contrasting with a net income of $395m in the prior year. This shift occurred after the US removed its “de minimis” import duty exemption on small packages, impacting sales. The EU has also introduced a €3 duty on small parcels from outside the bloc and intends to phase out the loophole, with the UK planning similar action by October 2028.