Shein Global Holdings' shares fell by as much as 10% in their debut on the Hong Kong Stock Exchange, touching 43.72 Hong Kong dollars (4.81 euros), compared to the placement price set at 48.56 Hong Kong dollars (5.35 euros).
However, the Asian fast fashion giant managed to cut a good part of the initial drop and ended the session with a decline of 0.12%, closing at 48.50 Hong Kong dollars (5.34 euros), after raising a total of 13.597 billion Hong Kong dollars (1.497 billion euros) in its stock market debut, about 13.214 billion Hong Kong dollars (1.455 billion euros) in net terms.
In this way, Shein managed to regain ground in the last hours of trading and soften the correction, although the company could not avoid having its stock price end in the negative.
With the offering price, Shein obtained an implied valuation of nearly 26.500 billion dollars (about 22.880 billion euros), a figure that was reduced after the first trading day and is far from the nearly 100.000 billion dollars (86.334 billion euros) it reached in 2022.
"Shein's numerous challenges are well known to investors and likely explain the sharp drop in the stock price on its IPO day. Growth is slowing, and losses are increasing amid tough competition from e-commerce and fast fashion companies. More importantly, its business model continues to be affected by the evolution of international regulations," highlighted the CEO of Union Bancaire Privee, Vey-Sern Ling, as reported by Bloomberg.
Thus, the textile firm concludes a process that has lasted several years, after its previous attempts to list in New York and London were blocked by political opposition and intense scrutiny over its supply chain in China.
While Shein's popularity soared during the pandemic, when consumers confined to their homes were attracted by its low prices and strong advertising investment, the company's valuation has been pressured by the imposition of U.S. tariffs, as well as the removal of tax exemptions that allowed it to evade import fees on shipments to the United States or the European Union.
Shein recorded losses of 99 million dollars (85 million euros) in the first three months of 2026, while it reached a turnover of 9.052 million dollars (7.752 million euros) in the first quarter of 2026, an advance of 1.1% compared to the same period of the previous year.