Shein shares slide in long-awaited stock market debut

ByOsmond Chia Business reporter. Updated 17 minutes ago.

Key points

• On Monday, Shein priced its shares at HK$48.56 each, raising ‌13.6 billion Hong Kong dollars ($1.7bn; £1.3bn) from the listing.
• Similarly, the European Union has imposed a €3 (£2.57; $3.50) tax on low-value imports.
• In 2025, Shein shifted its attention to Hong Kong, with Chinese authorities approving the move in July this year.
• In early trading on Tuesday morning, Shein's shares were trading at 43.9 Hong Kong dollars each.
• Founded in China and now headquartered in Singapore, Shein operates a global e-commerce network, with sales in more than 150 countries.

Shares in fast-fashion giant Shein fell by almost 10% in their highly anticipated stock market debut on Tuesday as it listed in Hong Kong after a long quest to go public.

As reservations were raised over matters including Shein's labour practices and its environmental impact, it comes after failed attempts to list in the US and UK.

As the firm faces other challenges like heated competition and trade tensions, once estimated to be worth almost $100bn (£74bn), Shein is now valued at around a quarter of that figure.

Shein has grown hugely popular, especially among younger individuals, due to its ability to source the highly latest fashions at ultra-low rates through a vast network of factories in China.

On Monday, Shein priced its shares at HK$48.56 each, raising ‌13.6 billion Hong Kong dollars ($1.7bn; £1.3bn) from the listing. That offered the business a stock market valuation of $26.3bn.

Shein has 281 million active customers who placed a total of more than a billion orders in the year to the end of March 2026, the firm stated in a filing ahead of the listing.

While US and European Union crackdowns on cheap imports are squeezing its finances, but its business model has come under intense scrutiny over environmental and human rights reservations.

Meanwhile, the stock market debut comes at a "complex moment" as investors grow sceptical over the performance of fast-fashion firms, stated Louise Deglise-Favre from research firm GlobalData. A benchmark for fast fashion.

For context, the listing marks the largest new share sale in Hong Kong so far this year. It is being seen as a test of investor appetite for the fast fashion industry.

It is a rare "standalone" e-commerce firm that can be assessed on its own merits, fashion industry analyst Deglise-Favre remarked.

Shares in rivals Asos and Boohoo have been battered over recent years as they face regulatory scrutiny and fierce competition.

"Investors have learned to be sceptical, " while reservations over sustainability and ethical matters add to the complexity of Shein's share sale, Deglise-Favre noted. The rise and rise of fashion giant Shein.

Meanwhile, the truth behind your $12 dress: Inside the Chinese factories fuelling Shein's success.

Shein's long road to the stock market highlights the geopolitical pressures and regulatory scrutiny faced by Chinese firms with global ambitions.

Meanwhile, the firm once looked set for one of the largest stock market debuts ever by a Chinese firm, with Wall Street in its sights.

Its business had surged during the Covid-19 pandemic as individuals, stuck at home, turned to online retailers.

Shoppers shared clips of themselves trying on sizeable numbers of its garments, a trend called Shein Hauls, boosting the company's online presence.

Notably, an initial public offering (IPO) in the US – by far Shein's largest market – would have offered it a chance to further growth its global profile and tap into Western financing.

But the firm faced resistance from US lawmakers. This person objected to the planned listing over reservations of forced labour in Shein's factories. In response to such allegations, the firm has stated it takes a "zero-tolerance policy for forced labour".

It has additionally been accused of copying other designers' ideas. Shein has remarked "it takes all claims of infringement seriously" and that it respects the rights of all designers.

Shein additionally explored the possibility of making its stock market debut in London but faced similar opposition. The BBC has contacted Shein for further comment.

"Shein ran out of venues that could take it, " remarked Ashley Dudarenok, founder of Chinese market research firm ChoZan.

Notably, the firm attempted to "look less Chinese" by shifting its headquarters to Singapore ahead of its IPO bid, but it never won political backing abroad nor assurances from Beijing, she went on.

"For Chinese companies increasingly shut out of Western exchanges, Hong Kong is fast becoming the only realistic path to market, " Deglise-Favre remarked.

For context, the move additionally coincided with Shein's publicity-shy founder Xu Yangtian making a rare public appearance during a major business conference in February.

Xu took to a stage in Guangdong, home to plenty of of China's garment factories, to re-affirm his company's ties to Beijing.

He pledged investments in China's clothing industry, adding that the "nourishment" from the country has been "inseparable" from Shein's success.

Trade tensions and regulatory reservations mean Shein is navigating a highly different landscape to when it first began exploring a potential IPO.

In July, it documented a $99m quarterly loss as its sales slowed after the US struck down an import duty exemption on small packages.

In practice, the exemption, known as the de minimis rule, had supported Shein and rival Temu grow rapidly as it allowed packages worth less than $800 to enter the US without incurring import duties.

In practice, the Iran war has additionally hit demand, raised costs and caused delays to deliveries in some markets, Shein has stated.

Its rivals are feeling the pressure too. In August, Temu-owner PDD documented lower-than-expected quarterly revenue.

Shein is additionally being investigated by US and European regulators over its business practices. Despite these challenges some analysts still see solid potential for Shein.

Investors will be scrutinising whether the firm can navigate theses matters, such as shifting logistics out of China to avoid the US and EU's import fees, Deglise-Favre noted.

For context, the slump in the firm's valuation demonstrates "genuine deterioration", but it is still backed by a "formidable supply chain" and a global reach, she went on.

In short, shein shares slide in long is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.