Fast-fashion retailer Shein saw its share price drop during its Hong Kong listing on Tuesday following previous failed attempts to go public in the US and UK.
Key facts
- •Shein raised 13.6 billion Hong Kong dollars through its initial public offering.
- •The company's current market valuation stands at $26.3 billion, down from previous estimates of nearly $100 billion.
- •Shein reported 281 million active customers and over a billion orders in the year ending March 2026.
- •The company has faced opposition from US lawmakers regarding allegations of forced labor in its supply chain.
- •Shein is currently under investigation by regulators in both the United States and the European Union.
Shares in the fast-fashion company Shein fell by nearly 10% during their stock market debut in Hong Kong on Tuesday. The listing follows previous unsuccessful efforts to enter public markets in the United States and the United Kingdom, where the company faced scrutiny regarding its labor practices and environmental impact.
By the numbers
Valuation and Market Performance
Shein priced its shares at HK$48.56 on Monday, raising 13.6 billion Hong Kong dollars and achieving a market valuation of $26.3 billion. By Tuesday morning, the share price had slipped to 43.9 Hong Kong dollars. This valuation marks a significant decline from previous estimates, which once placed the company's worth at nearly $100 billion.
Regulatory and Operational Challenges
The company, which is headquartered in Singapore and operates in over 150 countries, faces ongoing investigations from US and European regulators. These authorities have scrutinized Shein's business model, including concerns over forced labor allegations, which the company denies, and claims of design infringement. Additionally, the firm is navigating trade tensions and new import fees that are pressuring its profit margins.
Business Model and Growth
Shein gained popularity by utilizing a vast network of factories in China to provide low-cost fashion to a global customer base. In the year ending March 2026, the company reported 281 million active customers who placed over a billion orders. Analysts note that while the company maintains a strong supply chain, it must now demonstrate that its business model remains profitable amid increased regulation and rising costs.
Timeline
- March 2026The company reached over a billion orders in the year leading up to this date.
- MondayShein priced its shares at HK$48.56 ahead of its market debut.
- TuesdayShein shares began trading in Hong Kong and fell by nearly 10%.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by BBC Business.
