Shares in fast-fashion giant Shein fell by almost 8% in their highly anticipated stock market debut on Tuesday as it listed in Hong Kong after a long quest to go public.
It comes after failed attempts to list in the US and UK, as concerns were raised over issues including Shein’s labour practices and its environmental impact.
Once estimated to be worth nearly $100bn (£74bn), Shein is now valued at around a quarter of that figure, as the firm faces other challenges like heated competition and trade tensions.
Shein has grown hugely popular, especially among younger people, due to its ability to source the very latest fashions at ultra-low prices through a vast network of factories in China.
At a ceremony to celebrate the listing, chief financial officer Leigh Gui said the company’s model of selling large numbers of small orders with rapid payment options now reaches about 160 markets worldwide.
“Let global consumers enjoy the sound of fashion,” he said.
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 gave the company a stock market valuation of $26.3bn.
In early trading on Tuesday morning, Shein’s shares were trading at 44.8 Hong Kong dollars each.
The disappointing debut suggests the market is not convinced that Shein’s growth can make a “comeback”, said Charu Chanana, chief investment strategist at investment bank Saxo.
Shein has more than 273 million active customers who placed a total of more than a billion orders in the year to the end of March 2026, the firm said in a filing ahead of the listing.
But Shein now faces higher costs, regulatory scrutiny and more competition, while investors are increasingly drawn towards technology companies, Chanana said.
For customers, the slump in Shein’s shares is a sign that the firm’s cheap prices are “becoming harder to sustain”, which may lead to higher prices, she added.
