DistantNews
Support us
🇩🇰 Denmark /Economy & Trade

Shein makes a weak debut on Hong Kong stock market

From Berlingske · () Danish

Translated from Danish and summarized by DistantNews. Read the original for the full story.

At a glance

Newswire From a news agency Outcome reported
  • Shein shares fell about 10% after the Chinese online retailer debuted in Hong Kong.
  • The company raised $1.7 billion in new capital at an initial price of HK$48.56 per share, valuing it at $26.5 billion.
  • Shein’s net income fell 39% last year, while its first-quarter result reportedly shifted from a $395 million profit to a $99 million loss.

Shein’s Hong Kong stock-market debut began with a sharp fall, extending a decline that has reduced the fast-fashion company’s value from almost $100 billion at its 2022 peak.

The Chinese online retailer set its initial share price at HK$48.56 after cutting its valuation. It raised $1.7 billion in new capital, giving the company a listing valuation of $26.5 billion. After trading began, the stock fell to HK$43.8, down about 10%.

Shein built its reputation on inexpensive clothing and benefited from low-cost shipping. New tariff rules in Europe and the United States have since put pressure on that model. The company’s net income fell 39% last year.

Its recent figures point to further strain. According to Berlingske, Shein recorded a $99 million loss in the first quarter of this year, compared with a profit of $395 million in the same period last year. Western scrutiny also disrupted the company’s earlier plans to list in New York or London.

About this summary

Originally published by Berlingske in Danish. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

More Stories

From Our Blog