Shein

Shares in fast-fashion giant Shein fell as much as 10% on their trading debut on Hong Kong’s stock market on Tuesday, before recovering some of their losses, following years of delay to the company’s plans to list publicly and regulatory setbacks in Europe and in the US.

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Shein’s initial public offering opened on 24 August, with the final share price set a week later on 31 August. Trading began the following day, on Tuesday.

The gap reflects standard IPO process, as investors placed their orders over about a week, the banks running the deal then fixed the final price and decided who got shares, and trading opened a few business days later once the exchange gave the final go-ahead.

The listing marks the end of a long search for a stock market willing to take Shein after plans to list in New York and London stalled amid scrutiny over its Chinese supply chains, forcing the company to turn to Hong Kong instead.

New US and EU tariffs on low-cost parcels from China, along with rising shipping costs from the war in Iran, have contributed to Shein’s swing from a $395 million (€340mn) profit to a $99 million (€85mn) loss in the first quarter of this year.

Shein raised about $1.7 billion (€1.46bn), pricing shares at HK$48.56 (€5.33) each, in one of the city’s biggest share sales this year.

“Shein’s Hong Kong listing marks a new starting point,” said Leigh Gui, Shein’s chief financial officer, in a short speech at its listing ceremony.

But in early trading, the shares fell to below HK$44 (€4.83) before losses narrowed.

Tariffs squeeze profits

Shein has built its appeal to customers on ultra-fast, affordable fashion, delivered from China to the West within days.

However, the end of “de minimis” tariff exemptions in the US and the European Union has raised duties on low-value parcels from China, including Shein’s products. Higher logistics costs, driven partly by the war in Iran, have also squeezed the company’s low-price business model and profitability.

Tariff costs have forced Shein to raise prices, “cutting into its main advantage,” said Jacob Cooke, CEO of WPIC Marketing + Technologies.

Back to its roots

Shein, pronounced “she-in,” earlier explored listing its shares in New York and London, and moved its headquarters from China to Singapore in 2021.

But increasingly strict scrutiny by Beijing and by regulators in the US and Europe led it to embrace its Chinese roots and switch to a Hong Kong listing.

Launched in 2012 in China, much of Shein’s operations were in the southern province of Guangdong before it moved its corporate headquarters out of the country.

“Guangdong is Shein’s roots, and the starting point of our journey,” founder Sky Xu said in a speech in February.

Pivoting its focus back to China also highlighted the advantages Shein derives from a supply chain system that “only exists” in Guangdong, said William Ma of GROW Investment Group, referring to its small-batch, fast-response manufacturing model.

Shein has hit other roadblocks in expanding in Europe. In February, the EU launched a probe into the company with a focus on “illegal” products, including alleged child sexual abuse material.

In May, Shein acquired San Francisco-based eco-friendly clothing retailer Everlane, a move some analysts said was not the best fit.

Hong Kong’s IPO boost

The company’s market value was roughly $27 billion (€23.2bn) as it listed in Hong Kong, a fraction of its peak valuation a few years ago.

“Shein has probably missed its golden listing window due to the shift of momentum toward AI and tariffs, which can affect valuations and profitability,” said Gary Ng, a senior economist for Asia Pacific at French bank Natixis.

Still, Shein’s listing is welcome news for Hong Kong, as the Chinese territory makes increasing efforts to hold onto its role as a global financial hub following a downturn in 2023.

Hong Kong’s stock exchange has had a strong year for IPOs, raising more than $40 billion (€34.4bn) so far.

There is also a backlog of companies seeking to list there, said Lorraine Tan at investment research firm Morningstar.

Aug. 24 (UPI) — Chinese fast-fashion giant Shein announced plans Monday to raise $1.77 billion in its long-awaited IPO on the Hong Kong Stock Exchange.

In a filing to the SEHK, Shein said it will offer nearly 280 million shares with a price range of $6.07 and $6.32 in its Sept. 1 debut, valuing the company at a little under $27 billion. The final price will be fixed on Aug. 31.

The valuation is sharply down from the $100 billion it was valued at in 2020, due to higher costs and a slowdown in the growth of sales, and follows effort to float on the New York, NASDAQ and London stock exchanges in 2023 and 2024 that were abandoned amid roadblocks erected by regulators and lawmakers on both sides of the Atlantic.

Analysts said the firm had been hit hard by U.S. President Donald Trump‘s summer 2025 scrapping of the so-called de minimis import tariff exemption on low value packages on which its business model depended, with Shein reporting a $99 million loss in Q1, down from a $395 million profit in the same period in 2025.

The European Union imposed its own flat $3.50 import tax on low value packages coming into its single market, effective July 1, with Britain, another big market for the Chinese online retailers, also expected to implement similar measures to the United States and EU in 2028.

With the Hong Kong stock market’s attention focused on a string of highly sought after AI and chipmaker IPOs, investor enthusiasm for Shein has dwindled along with much of its appeal with consumers under the age of 35 amid the challenge from competition from firms like Temu.

The firm has also had reputational issues with scrutiny over multiple issues from environmental pollution to working conditions in its supply chain, including the possible use of forced labor in its supply chain.

In February, the EU launched an investigation alleging the design of Shein’s app was addictive, a lack of transparency of recommender systems, as well as the sale of illegal products, including “child sexual abuse material.”

Fast-fashion giant Shein could see its stock market valuation reach almost $27bn (£19.8bn) when its makes its debut in Hong Kong on 1 September.

The long-awaited move comes after failed attempts to list in the US and London due to regulatory challenges amid scrutiny of the firm, which has its headquarters in Singapore but was founded in China.

Since it was founded in 2008, Shein has risen to become one of the world’s biggest fast-fashion retailers, with customers in more than 150 countries.

The e-commerce giant is known for selling ultra-cheap clothes, backed by a vast network of factories in China that are able to quickly manufacture new products based on the latest trends.

Shein said in a filing on Monday, external that it will offer nearly 280 million shares for between HK$47.60 ($6.07; £4.45) and HK$49.50 each.

At the top of the range, the share sale would raise $1.77bn (£1.3bn) for the company and give it a market valuation of $26.8bn.

But that is much lower than the $100bn it was worth in 2022, reflecting weaker sales growth and higher costs.

The initial public offering (IPO) is being backed by Wall Street investment giants Goldman Sachs, Morgan Stanley and JP Morgan.

The company will make its highly anticipated debut on the Hong Kong stock exchange after efforts to go public since 2023.

Hong Kong has been revived as “one of the largest IPO markets” after attracting more firms from mainland China, said economics associate professor Feng Qu from the Nanyang Technological University.

Shein is likely to command a higher valuation in Hong Kong than it would in London, where regulatory scrutiny derailed its plans to sell shares there, Feng said.

Chinese companies may also be wary of selling shares in the US as tensions between the world’s two largest economies could result in firms being de-listed, he added.