Hong Kong exchange to launch Shein derivatives after trading debut next week

Hong Kong’s exchange operator will permit short selling of Shein’s shares when the fast-fashion brand launches trading on September 1. In addition to this, HKEX will introduce weekly and monthly options, as well as derivative warrants for Shein shares. The weekly options will commence trading on September 1, with contracts expiring on September 4 and September 11.

Monthly contracts will have expiration dates in September, October, November, and December of the same year, as well as March, June, and September of the following year. Each options contract will be based on a 500-share contract size. The simultaneous introduction of these financial instruments on Shein’s listing day will provide investors with immediate trading and hedging tools, potentially enhancing liquidity and facilitating more accurate price discovery.

Shein is expected to conduct its initial public offering (IPO) close to the midpoint of its specified share price range, at HK$48.56 per share. This valuation would place the company at an estimated worth of around US$26.5 billion, according to Reuters, based on information from two sources familiar with the matter.