Shein CEO’s wealth falls over US$15bil after whittled-down IPO

In 2022, Shein Global Holdings was once worth more than the parent companies of H&M and Zara, giving its reclusive CEO Sky Xu a net worth exceeding US$23 billion. However, Xu's wealth has plummeted to around US$8 billion following Shein's Hong Kong IPO, a 15 billion dollar decline. The downfall is attributed to Shein battling tariffs, political scrutiny, and rising competition, particularly from AI companies.

The IPO price marked a mere quarter of Shein's value in 2022. Chinese consumer brands that went public recently also failed to capture investor interest due to AI companies overshadowing them and creating new billionaires. Despite initial investor enthusiasm, other AI companies have seen robust first-day gains, while Hong Kong IPOs have generally underperformed.

The brothers behind Mixue Group, a popular bubble-tea chain, have lost more than a fifth of their wealth since going public last year. Xu founded Shein in 2012 with three partners, turning it into a well-known online retailer offering affordable, trendy apparel. The company thrived during the COVID-19 pandemic but has since seen a slowdown in revenue growth.

Shein's strategies, such as bypassing import taxes through small shipments, were disrupted by the end of a tariff exemption in the US and a fixed customs duty in the EU. The business now faces a shifting market, with AI posing a significant challenge to its competitors.