Fashion company Shein starts long-awaited stock market listing in Hong Kong, but are its glory years over?

Chinese fast fashion behemoth Shein has initiated its highly anticipated initial public offering in Hong Kong, seeking to secure 1.5 billion euros from investors. This move comes at a time when the company confronts substantial hurdles, reflected in a sharp decline in its valuation compared to just a few years ago. Once hailed as one of the world's fastest-growing e-commerce businesses, Shein now grapples with escalating operational costs and intensified market competition.

The IPO, or 'initial public offering,' allows the company to sell shares to the public for the first time. Investors can subscribe to the offering, with the stock expected to commence trading on September 1st. Shein, now headquartered in Singapore, plans to issue 280 million shares priced between 47.6 and 49.5 Hong Kong dollars each, translating to approximately 5.2 to 5.4 euros. This pricing values the company at roughly 23 billion euros, a stark contrast to its nearly 85.7 billion euro valuation during a 2022 funding round.

While Shein remains a dominant force in the fast fashion sector, its growth trajectory has markedly decelerated. Total revenue in 2025 reached $35.8 billion, an 8% increase, a significant drop from the 20.7% growth in 2024 and 41.4% in 2023. The first quarter of this year saw growth limited to a mere 1.1%, partly attributed to new U.S. import tariffs. Furthermore, the company experienced a slight loss instead of profit.

A key shift from previous years is Shein's diminished dominance in the ultra-cheap online purchase segment, with Temu emerging as a major competitor. Both platforms target consumers buying inexpensive goods directly from China, leading to increased marketing expenditures and heightened competition for customer acquisition. Additionally, regulatory actions are impacting Shein's business model. The elimination of a significant exemption for low-value packages in the United States has made shipments from China more expensive. Shein acknowledges this measure is slowing growth and raising costs. Europe has also tightened regulations, introducing a 'parcel tax' since July, imposing a 3-euro levy on online purchases from outside the EU valued under 150 euros. Shein warns in its prospectus that these impacts could affect its business.