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[BUSINESS] · China, Hong Kong SAR China, United States, Singapore, United Kingdom · 21 sources

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Shein prepares for Hong Kong IPO with significantly lower valuation

Shein is preparing for an initial public offering (IPO) in Hong Kong following approval from the China Securities Regulatory Commission (CSRC). This follows several failed attempts to list in New York and London due to regulatory scrutiny and political headwinds regarding supply chain practices.

Market analysts at Bloomberg Intelligence estimate Shein's valuation will fall between $22 billion and $25 billion, a significant decline from its peak valuation of approximately $100 billion in 2022. This lower valuation reflects decelerating revenue growth, rising operational costs, and increased competition from rivals like Temu.

The company's business model, which relies on shipping low-value goods directly to consumers, is facing significant pressure from new trade policies. Changes to de minimis tax exemptions in the United States and the introduction of a three-euro customs fee per package in the European Union have increased costs. Shein reported a net loss of $99 million in the first quarter of 2026, signaling a shift from its previous profitability.

Entities

Bloomberg Intelligence · China Securities Regulatory Commission · Dao Insights · European Union · Hong Kong · Hong Kong Stock Exchange · Shein

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about 1 month ago
about 1 month ago