Fast-fashion giant Shein tumbles in Hong Kong debut

Fast-fashion retailer Shein experienced a significant drop of over 9% in its initial public offering (IPO) on the Hong Kong stock market on Tuesday. The Chinese-founded e-commerce giant raised a total of US$1.7 billion during the IPO, despite its plans to list in New York and London falling through due to regulatory concerns. Shein's shares were trading at HK$44.00 shortly after the market opened, falling short of its HK$48.56 listing price.

Beijing granted Shein permission to launch its IPO in Hong Kong in July. The company intends to use the proceeds to enhance its technological capabilities and expand globally. In 2025, Shein reported a full-year net profit of US$2.06 billion but faced a US$99 million quarterly loss due to the United States eliminating an import duty exemption on small packages.

Meanwhile, the European Union imposed a three-euro (US$3.50) duty per item for packages under 150 euros, and France will introduce a fee on ultra-fast fashion items that could potentially reach nearly 20 euros per garment.