Shein disappoints in Hong Kong stock market debut

Shein’s long-awaited stock market debut in Hong Kong failed to impress investors. Shares fell as much as 8%, putting the online fashion retailer’s valuation at roughly $24 billion.

The weak opening reflects concerns that have followed the company for years. Problems that delayed the listing have also weakened some of Shein’s competitive advantages, while new tariffs and fees in the United States and Europe are challenging its model of shipping inexpensive goods directly to customers.

Shein became known for extremely cheap clothing, including five-dollar tops. But its current valuation remains far below the nearly $100 billion peak reached in 2022. Analysts cited in the report said the shares still looked expensive compared with rival Temu, despite the steep discount from that earlier valuation.

The company also entered its first-quarter loss-making period. In response, Shein has sought to broaden its business by opening its platform to other sellers and acquiring fashion brands such as US-based Everlane.

Earlier attempts to list in New York and London failed amid close scrutiny of the company’s business practices, including working conditions and sustainability. The Hong Kong debut therefore offered a new test of investor confidence, but the initial trading response pointed to continued doubts.