Shein Slumps 8-10% on Hong Kong IPO Debut as Valuation Shrinks 70% From Peak

Shein began trading on the Hong Kong Stock Exchange on September 1 under stock code 00625, opening at HK$48.56 per share — and immediately sliding 8-10 percent in early sessions. The IPO values the fast-fashion giant at roughly $27 billion, a steep 70 percent discount from its near-$100 billion private market peak. The rocky debut caps a long and troubled path to listing, with Shein having navigated regulatory scrutiny, tariff headwinds, and questions about its China-linked supply chain. Still, the IPO raised approximately $1.7 billion, and UBS served as a cornerstone investor.

Key Takeaways

Shein began trading on the Hong Kong Stock Exchange on September 1 under stock code 00625, opening at HK$48.56 per share — and immediately sliding 8-10 percent in early sessions.
The IPO values the fast-fashion giant at roughly $27 billion, a steep 70 percent discount from its near-$100 billion private market peak.
The rocky debut caps a long and troubled path to listing, with Shein having navigated regulatory scrutiny, tariff headwinds, and questions about its China-linked supply chain.
Still, the IPO raised approximately $1.7 billion, and UBS served as a cornerstone investor.

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Shein, the Chinese-founded fast-fashion juggernaut, began trading on the Hong Kong Stock Exchange on September 1, 2026, under stock code 00625 — and the debut was not kind.

Shares opened at HK$48.56 per share, at the middle of the IPO's indicated range, and immediately fell as much as 10 percent before paring losses to around 8 percent in early afternoon trading. The selloff sent a clear signal that investor enthusiasm remains tempered by concerns over tariffs, geopolitical risk, and the company's tangled relationship with its Chinese supply chain.

The IPO values Shein at roughly $27 billion — a dramatic 70 percent collapse from the nearly $100 billion valuation the company commanded at its private-market peak. At its IPO price, the offering raised approximately $1.7 billion, with UBS serving as a cornerstone investor.

The path to listing was anything but smooth. Shein had originally targeted a London listing, but that effort was derailed by regulatory pushback over supply chain transparency. The company pivoted to Hong Kong after receiving approval from China's Securities Regulatory Commission in July. Even so, the reduced valuation and delayed timeline underscored how far the company's standing has shifted since its rapid pandemic-era ascent.

Shein's core challenge remains navigating the intersection of geopolitics and commerce. U.S. trade tensions, particularly the threat of tariffs on low-cost imports, weigh heavily on a business model built around ultra-cheap clothing shipped directly from Chinese factories to consumers worldwide. The company has been working to diversify its supply chain, establishing manufacturing hubs in Turkey, Brazil, and other markets, but its identity remains deeply tied to its Chinese origins.

Despite the rough debut, the IPO still represents a significant milestone: Shein is now publicly traded, giving it access to institutional capital and greater transparency in a market that has long operated in regulatory gray zones. For Hong Kong, the listing is a boost to the exchange's credentials as a destination for global tech and consumer companies seeking capital.

Shein joins a growing list of companies — from Alibaba to Xiaomi — that have turned to Hong Kong as a secondary listing venue, reflecting both the city's deepening ties with mainland Chinese capital markets and the increasing complexity of cross-border listings in an era of heightened regulatory scrutiny.