Shein Makes Lackluster Hong Kong Debut As Investors Fret About Growth And Regulatory Risks
A logo of fast-fashion retailer Shein is seen on the t-shirt at the listing ceremony in Hong Kong on Sept.1, 2026.AP Photo/Chan Long HeiHONG KONG, Sept 1 (Reuters) - Shares in online fast-fashion retailer Shein ended flat in their Hong Kong debut on Tuesday, failing to gain a typical first-day pop amid worries about setbacks that have undermined its competitive advantage.Known globally for selling $5 tops and $10 dresses, Shein has been humbled by tariff and duty changes in the U.S.
and Europe that have contributed to a dramatic decline in valuation for the company.Advertisement Founded in China in 2012 and headquartered in Singapore since late 2021, Shein spent years touting its credentials as a global company before re-embracing its Chinese roots to list in Hong Kong.That capped a four-year quest to go public after failing to list in New York and London.Intense scrutiny of its business practices also hampered its attempts that were ultimately blocked by Chinese authorities.Its shares finished at HK$48.50, compared to its HK$48.56 IPO price after rebounding from an earlier slide of as much as 10%.
That valued the company at about $26.3 billion, compared to its peak of nearly $100 billion in 2022.Advertisement “As a new company listed in Hong Kong, we will continue to innovate, optimize, and cooperate with our supply chain partners for mutual benefit and win-win results,” Shein Chief Financial Officer Leigh Gui said at the opening gong ceremony.Founder and CEO Sky Xu, known for disliking the limelight, did not speak at the event though later took pictures with Shein employees on stage.That was in keeping with his reclusive personality but unusual for the head of a major company at a milestone public event.He declined to respond to Reuters’ questions.
Founded in China in 2012 and headquartered in Singapore since late 2021, Shein spent years touting its credentials as a global company before re-embracing its Chinese roots to list in Hong...