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[BUSINESS] · Hong Kong SAR China, Singapore, United States, China · 24 sources

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Shein debuts on Hong Kong Stock Exchange with volatile trading

Fast-fashion giant Shein made its long-awaited debut on the Hong Kong Stock Exchange, but the listing faced a rocky start. Shares plummeted as much as 10 percent in early trading before recovering to close near the initial public offering price of 48.56 HKD. The company raised approximately 1.7 billion US dollars through the sale of 280 million shares, resulting in a valuation of roughly 26.5 billion US dollars.

This valuation represents a significant decline from Shein's 2022 private market valuation, which reached nearly 100 billion US dollars. Investors' caution is attributed to several factors, including slowing growth, intensifying competition from platforms like TikTok Shop and Temu, and shifting regulatory landscapes. Specifically, the removal of de minimis tax exemptions in the United States and the European Union has challenged Shein's low-cost, cross-border business model.

Financial reports indicate a weakening of the company's performance, with a reported net loss of 99 million US dollars in the first quarter of 2026. To stabilize the share price during the debut, Goldman Sachs acted as the stabilization manager. Shein plans to allocate 40 percent of its IPO proceeds to technology improvements and another 40 percent to brand strengthening and global expansion.

Entities

Goldman Sachs · Hong Kong Stock Exchange · Shein · Temu · TikTok Shop

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9 days ago
10 days ago