Shein shares slide in Hong Kong market debut after $1.7B IPO

Fast-fashion giant Shein began trading on the Hong Kong Stock Exchange on Tuesday under stock code 0625, opening flat at its IPO price of HK$48.56 before sliding sharply in its first hours of trading. The weak debut caps a years-long saga for one of the world's most prominent online retailers, which once commanded a private-market valuation of nearly $100 billion.

A Muted Open Turns Worse

Shein raised HK$13.6 billion ($1.7 billion) by selling about 280 million shares priced at HK$48.56 — just above the midpoint of its marketed range of HK$47.60 to HK$49.50. The IPO valued the company at roughly $26.5 billion, making it one of the world's largest listed apparel firms but still well below H&M Hennes & Mauritz AB, valued at about $30 billion. Shares opened at the IPO price before falling more than 7%, according to CNBC. The decline followed an ominous signal on Monday, when gray-market trading saw the stock sink more than 10% below its offer price.newscord+4

The retail portion of the IPO was subscribed 5.6 times, while institutional investors bid for 2.6 times the shares available. Cornerstone backers include Boyu Capital, Tiger Global Management, General Atlantic, Tencent, and UBS ↗ 1.42% Asset Management, all subject to a six-month lockup.moneycontrol

Tariffs, Losses, and a Long Road to Market

The listing arrives after failed attempts to go public in New York and London. Shein first filed confidentially for a U.S. IPO in 2023, but Beijing withheld approval over risk disclosures tied to its China-based supply chain. Hong Kong ultimately emerged as the venue of last resort.reuters+1

The company's finances have deteriorated alongside its valuation. Revenue growth slowed to 8% in 2025, reaching $41.8 billion, while Shein swung to a $99 million net loss in the first quarter of 2026 from a $395 million profit a year earlier. The loss was driven partly by the U.S. elimination of a duty exemption on small packages from China and fair-value charges on convertible preferred shares.newscord+3

Investor Caution Ahead

At roughly 15 times forward earnings, the stock is "already pricing in part of a growth comeback before it has delivered one," Gary Tan, a portfolio manager at Allspring Global Investments, told Bloomberg. "Investor appetite post-listing is likely to be cautious until management proves its business model reset can reignite growth."moneycontrol

Bloomberg Intelligence analyst Catherine Lim noted that the March 2027 lockup expiry "will be a more meaningful test of its market value than the listing debut". Shein's four founders retain nearly 60% of the firm and close to 90% of voting rights, locked for 24 months.moneycontrol