Shein drops 8% in Hong Kong debut after US$1.7 billion IPO
Why it matters: Tariffs, lost duty breaks and regulatory scrutiny have cut Shein’s value to about US$24 billion from nearly US$100 billion in 2022.
Shein shares fell about 8% in their Hong Kong trading debut Tuesday, extending weakness seen in grey-market trading after the fast-fashion retailer raised US$1.7 billion in its long-delayed IPO. The stock traded near HK$44.6, below its IPO price of HK$48.56, valuing the company at roughly US$24 billion. Investors have questioned whether Shein can justify a valuation of about 15 times forward earnings as growth slows and competition from Temu intensifies. The company has also been hit by US tariff changes and the end of de minimis duty exemptions for low-value e-commerce shipments, while the European Union has imposed new fees on small parcels. Shein’s net income fell 39% last year and the company posted a first-quarter loss.