Shein shares plunge following Hong Kong Stock Exchange debut

Shein's stock has experienced a significant decline following its debut on the Hong Kong Stock Exchange. Reports indicate the shares have fallen between 17.5% and 21.4% within its first few trading sessions, with the most recent close at 38.14 Hong Kong dollars.

This market volatility stems from investor concerns regarding the company's ability to maintain growth amid changing international trade regulations. The fast-fashion giant's business model, which relied on low-cost cross-border shipping, is facing pressure from new tariff policies. In the United States, the removal of the de minimis exemption for shipments from China and Hong Kong has impacted operations. Similarly, the European Union implemented a temporary 3 euro charge per item in July 2025, eliminating previous tax exemptions for low-value imports under 150 euros.

Financial data shows that while Shein reported revenues of $41.8 billion in 2025, the company recorded a net loss of $99 million in the first quarter of 2026, compared to profits in the same period the previous year. Analysts suggest the company must now prove it can compete through localization and new growth drivers rather than relying solely on low prices.