Shein, the fast‑fashion giant that has built a fortune on ultra‑cheap apparel, saw its shares slide 8.7% on its highly‑anticipated debut on the Hong Kong Stock Exchange on Tuesday, a sharp drop that cut its valuation to $26.3 billion from a pre‑IPO estimate of nearly $100 billion.
The company, which had priced its shares at HK$48.56 but was knocked down by a market sceptical of its labour practices, environmental impact and the hammering of Chinese exporters by US and EU tariffs, now faces heavier costs and a tightening regulatory climate.
Shein’s founder Xu Yangtian and chief financial officer Leigh Gui celebrated the listing in front of a blue screen that now shows the shares’ 8.36 % fall, but the first day of trading saw the stock trade at HK$44.40, an 8.7 % decline from the issue price.
Industry analysts warn that the IPO marks a test of investor appetite for fast‑fashion, as rivals such as Asos and Boohoo have also suffered in the wake of sustainability scrutiny and fierce competition.
With 273 million active customers and a billion orders last year, Shein still boasts a vast supply chain across China, but the slump suggests that its ultra‑low‑price model may be harder to sustain as the company faces higher shipping costs and new import duties in the US, EU and beyond.
