Fast-fashion giant Shein plunges 10% on Hong Kong debut

HONG KONG: Shein, the fast-fashion giant, suffered a significant nine percent drop in its Hong Kong stock market debut on Tuesday. The company had raised US$1.7 billion through its initial public offering, following unsuccessful attempts to list in New York and London due to regulatory issues. Trading at HK$44.00 immediately after the market opened, Shein closed at a price lower than its initial listing at HK$48.56.

The Chinese-founded e-commerce giant was granted approval by Beijing to launch its IPO in Hong Kong in July. Shein allocated the funds raised to enhance its technological capabilities and expand its international reach. The company relocated its headquarters to Singapore between 2021 and 2022, reportedly to avoid heightened global scrutiny of Chinese firms.

By the end of 2025, Shein's European customer base had surged to 156 million average monthly users, positioning it among the continent's largest e-commerce platforms, alongside AliExpress and Amazon. Despite reporting a full-year net profit of US$2.06 billion in 2025, Shein faced a US$99 million quarterly loss in the same year after the US reversed an import duty exemption for small packages.

The European Union subsequently imposed a three-euro (US$3.50) duty per item on packages valued under 150 euros, with France set to introduce a similar fee on ultra-fast-fashion items that could potentially amount to nearly 20 euros per garment.