Fast-fashion giant Shein’s shares drop 7% in Hong Kong market debut
Shares fell as much as 10% as investors weighed slowing growth, tariff pressure and regulatory scrutiny after the company raised $1.7 billion.
- On Tuesday, shares of Shein fell 7% during their Hong Kong Stock Exchange debut. The IPO raised $1.74 billion, valuing the Singapore-headquartered company at about $26.5 billion.
- Shein's Hong Kong listing follows unsuccessful attempts to go public in New York and London. Beijing previously blocked the London offering over risk disclosures tied to the China-founded company's supply chain.
- Once valued at $100 billion in 2022, the company's valuation dropped to $26.5 billion. First-quarter revenue reached $9.05 billion, though Shein reported a $99 million net loss.
- Shein contends with shifting tariff and duty regulations in the West, impacting the retailer known globally for selling $5 tops and $10 dresses.
- Allocating 40% of IPO proceeds to enhance technology capabilities, Shein will use another 40% to boost brand awareness and strengthen its global presence.
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The Chinese fast-fashion giant reached the Hong Kong stock market valued at $26 billion, against the $100 billion of 2022. The fall in valuation also hit founder Sky Xu: his fortune, calculated on the basis of a 30% stake, fell more than $15 billion.
Fast fashion company Shein has listed on the Hong Kong stock exchange, but its corporate value has plummeted from $100 billion to $26 billion. The profitability of its ultra-low-price business model has significantly deteriorated due to a confluence of negative factors, including the U.S.-China conflict, the abolition of the U.S. microtax system, and rising global logistics costs. As a result, the company now faces the challenge of reproducing i…
After Several Frustrated Attempts: Shein Closes Her Expected Hong Kong Stock Market Debut with Falls
Shein’s ‘fast fashion’ platform debuted Tuesday with 0.12% falls after starring in an early stock market outing in Hong Kong after years of swings and frustrated plans that caused a 73% drop in its valuation from the peak it had marked in 2022. The titles started the day in ... Continue reading "After several frustrated attempts: Shein closes with falls his expected debut in the Hong Kong stock market" The post After several frustrated attempts:…
Online retailer Shein failed to convince investors on its first day of trading in Hong Kong on Tuesday. Consequently, the long-awaited IPO of Shein, known for cheap clothing and other products, has resulted in a minor disappointment.
The shares came to mark the $43.72 Hong Kong dollars before recovering virtually all the land lost at closing.
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