Shein Shares Fall Sharply at Hong Kong Debut

Shein’s long-awaited stock market debut opened with a sharp decline in Hong Kong. Shares fell as much as 8% in early trading, despite the online fashion platform raising up to 1.5 billion euros through the offering.

The company set the offer price at 48.56 Hong Kong dollars per share, but the stock traded between 44 and 45 Hong Kong dollars, equivalent to about 4.83 to 4.94 euros. The debut valued Shein at roughly $24 billion, well below the nearly $100 billion valuation reached during a financing round four years ago.

Analysts cited in the report still considered the shares expensive compared with rival Temu, even after the valuation discount. Shein, founded in China and relocated to Singapore between 2021 and 2022, had previously sought listings in London and New York. Those efforts reportedly failed amid opposition from the Chinese government.

The company says it will use the proceeds partly to strengthen its technology infrastructure and brand. Its business has recently faced pressure from new customs rules in key markets including the United States and Europe. Shein sells products in more than 150 countries and says it has 130 million users in Europe and 273 million customers worldwide.

The weak debut comes as Shein continues to face criticism over allegations of systematic plagiarism, its environmental record and forced labor.