Fast-fashion giant Shein shares plunge in Hong Kong debut after US$1.7b IPO

Hong Kong's fast-fashion retailer Shein saw its shares drop over nine percent on its debut trading in the city on Tuesday, despite raising US$1.7 billion in an initial public offering. The Chinese-founded e-commerce company had initially planned to list in New York and London, but faced regulatory hurdles. Upon opening, Shein's shares were trading at HK$44.00, below its listing price of HK$48.56.

Shein's success in Hong Kong came after securing Beijing's approval in July for its IPO. The company attributed the proceeds to funding technological advancements and expanding globally. Shein relocated its headquarters to Singapore from 2021 to 2022, reportedly to sidestep intensified global scrutiny of Chinese firms. By the end of 2025, Shein's European user base had reached 156 million average monthly users, positioning it as one of the largest e-commerce platforms on the continent, alongside China's AliExpress and US giant Amazon.

In 2025, Shein reported a full-year net profit of US$2.06 billion but suffered a US$99 million quarterly loss after the U.S. lifted an import duty exemption on small packages. The European Union recently imposed a €3 per item duty for packages under €150, while France will introduce a fee on ultra-fast fashion items that could reach nearly €20 per garment.