Shein Shares Slide 10% in Hong Kong Debut, Valuation Falls Far Below 2022 Peak

Shein’s long-awaited arrival on the Hong Kong stock market began with a sharp setback. Shares in the fast-fashion retailer fell 10% on Tuesday, dropping as low as HK$43.72 against a listing price of HK$48.56.

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zero tolerance

The $1.7 billion initial public offering valued Shein at roughly $26.3 billion. That is far below the nearly $100 billion valuation attached to the company during private fundraising rounds in 2022. The company had previously pursued listings in New York and London, but regulatory scrutiny derailed those plans. Chinese officials approved the Hong Kong sale in July.

Shein said it would use the proceeds to strengthen its technological capabilities and expand internationally. The company moved its headquarters to Singapore between 2021 and 2022, a move analysts said was intended to avoid growing scrutiny of Chinese firms. Its European customer base reached 156 million average monthly users by the end of 2025, putting it among the region’s biggest e-commerce platforms, behind AliExpress and Amazon in the figures cited.

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has converged to the pace seen by the fast fashion industry at below 10 percent in 2025

The debut came as Shein faces pressure on several fronts. Critics have focused on its environmental footprint and allegations of human rights violations, while the company also faces competition from Temu and AliExpress. Executive chairman Donald Tang said the company had “zero tolerance” for forced labor.

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does reflect that drop off in investor appetite for Shein's shares

Morningstar analyst Lorraine Tan said revenue growth had slowed to below 10% in 2025 and that the lower valuation reflected reduced investor appetite. Sustainable fashion expert Ken Pucker said Shein had built a powerful model that competitors would struggle to copy, but listed taxes, sustainability, privacy, copyright practices and competition as challenges. The United States has ended a duty exemption for small packages, the European Union has imposed a three-euro charge on some low-value parcels, and France is introducing fees on ultra-fast-fashion items. Shein reported a $2.06 billion profit for 2025 but recorded a $99 million loss in the first three months of this year.

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Timing is not ideal given the company's slowing growth. That said, it has been trying to go public for around five years, and I am guessing that many of its investors were eager to get paid out.