Shein shares close flat after long-awaited Hong Kong market debut
Shein shares closed almost unchanged on their first day of trading in Hong Kong, following a long and difficult path to the stock market for the fast-fashion giant.
The company’s initial public offering valued Shein at around $26.5 billion, significantly below the nearly $100 billion valuation it reached in 2022.
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Shein priced its shares at HK$48.56, raising around $1.7 billion through the IPO.
The stock initially fell by as much as 10% during Tuesday’s session before recovering to close at around HK$48.50.
The Hong Kong listing comes after previous attempts to go public in New York and London failed amid regulatory scrutiny and concerns surrounding the company’s business practices.
Shein has built its global success on selling large volumes of low-cost clothing online, supported by a fast-moving supply chain based largely in China.
However, changes to tariffs and customs rules in major markets have put increasing pressure on that model.
The removal of duty exemptions for low-value parcels in the United States and European Union has increased costs, while France has also introduced new penalties targeting the most intensive forms of fast fashion.
Shein has faced particular scrutiny in France, where concerns have been raised over the environmental impact of ultra-fast fashion and the company’s business practices.
The new French penalties came into effect on the same day as its Hong Kong trading debut.
The company has also faced wider regulatory scrutiny in Europe, while weaker profitability and uncertainty over future growth have contributed to the sharp fall in its valuation.
Despite the subdued first day of trading, Shein’s Hong Kong debut finally completes a years-long effort to secure a public listing, with the company ending its first session valued at around $26.5 billion.