Fast-fashion giant Shein's shares drop 7% in Hong Kong market debut

Shein, the fast-fashion giant, is preparing to make its much-anticipated debut on the stock market in Hong Kong after years of seeking to go public. The company, which once boasted a valuation of nearly $100 billion, now stands at around a quarter of that figure due to increased competition and global trade tensions. Despite its popularity, particularly among younger customers, Shein's valuation has been impacted by scrutiny over labor practices, environmental impact, and accusations of copying other designers' ideas.

The company's long road to the stock market has been marred by geopolitical pressures and regulatory scrutiny. Initially, Shein aimed for a US listing but faced resistance from US lawmakers over concerns of forced labor in its Chinese factories. It also explored a London debut but met opposition. In 2025, Shein decided to shift its focus to Hong Kong, where it received approval in July.

The company's efforts to "look less Chinese" included moving its headquarters to Singapore, but it faced challenges in navigating political backing and Beijing's policies. The stock market debut is seen as a test of investor appetite for the fast fashion industry. Analysts note that investors are growing skeptical about the performance of such companies.

Shein's valuation slump highlights genuine deterioration, but the company remains backed by a formidable supply chain and global reach.