Shein Shares Slide 9% in Hong Kong IPO Debut

Shein Global shares dropped sharply during their Hong Kong stock market debut on Tuesday, highlighting investor concerns over slowing growth, rising competition and tougher global trade rules affecting the fast-fashion giant.

Shein shares fell about 9% to HK$44.18 after touching HK$43.72, well below the HK$48.56 IPO price. The Hang Seng Index declined 0.7% during the session.

The weak performance was particularly notable because Shein offered investors only around 6.6% of its enlarged share capital. A limited public float can typically support newly listed shares through scarcity, but the decline suggested investors remained cautious about Shein’s valuation and long-term growth prospects.

The Hong Kong IPO raised HK$13.6 billion ($1.7 billion), valuing the Singapore-based, Chinese-founded retailer at approximately $26.5 billion. That is substantially below Shein’s nearly $100 billion valuation at its 2022 peak during the e-commerce boom.

Shein’s financial performance has also weakened. Revenue growth slowed from 41.1% in 2023 to 20.7% in 2024 and roughly 8% in 2025. Growth declined further to just 1.1% in the first quarter of 2026, when the company recorded a $99 million loss compared with a $395 million profit a year earlier.

Changes to international trade rules are adding pressure. The U.S. removal of the de minimis exemption for low-value imports and new European Union charges on inexpensive parcels threaten a business model heavily dependent on shipping low-cost products directly to consumers.

Meanwhile, Shein faces increasing competition from Temu and AliExpress. The company is responding by expanding its third-party marketplace, moving beyond fashion and pursuing acquisitions, including Everlane and Missguided.

Shein said about 80% of its IPO proceeds will support technology investments, global expansion and brand development. However, its four co-founders are expected to retain approximately 90% of voting rights after the listing.

Investor caution was visible even before Tuesday’s debut, with Shein shares falling more than 10% in grey-market trading on Monday. The early weakness indicates that investors remain uncertain whether Shein can revive growth while navigating higher costs, intense competition and tighter global trade restrictions.