Shein cae hasta un 10% en su debut en la Bolsa de Hong Kong

Shein made a turbulent debut on the Hong Kong Stock Exchange, initially falling by up to 10% within the first hours of trading. This dramatic drop came after years of ups and downs and failed plans, which had already caused a 73% decrease in its valuation since 2022. The stock fell to as low as 43.72 Hong Kong dollars (5.58 US dollars or 4.80 euros) during the initial trading session, below the IPO price of 48.56 Hong Kong dollars (6.19 US dollars or 5.33 euros), before recovering some of its losses.

Shein's shares traded in a volatile range for a few minutes before experiencing strong selling pressure, with sell orders three times more frequent than buy orders. Local newspaper South China Morning Post had already reported that Shein's shares had fallen by 28% in the 'grey market,' unofficial platforms where trading takes place outside formal exchanges.

The IPO demonstrates investors' appetite for internet retailers, a sector that has recently grappled with inflation, trade disruptions, and consumer caution in key markets, including China. It also provides a new benchmark for valuing cross-border e-commerce companies after years of regulatory scrutiny and a shift in investor enthusiasm toward AI-focused businesses.

"The numerous challenges that Shein faces are well known to investors and likely explain the sharp drop in the stock on its IPO day," said Vey-Sern Ling, CEO of Union Bancaire Privée. "Growth is slowing, and losses are increasing amid intense competition from both e-commerce firms and fast-fashion companies. Most importantly, its business model remains vulnerable to evolving international regulations."

The company raised $1.7 billion (1.46 billion euros) in the offering, giving it a market capitalization of over $26 billion (22.4 billion euros), far below its previous valuation of $100 billion (86 billion euros). Despite this, Shein remains one of the world's largest fashion and apparel companies traded on the stock market, though still below Swedish Hennes & Mauritz AB (H&M), valued at around $30 billion (25.85 billion euros).

The company has faced growing challenges since its peak, including higher tariffs, increased regulatory scrutiny, and intensified competition from Temu, PDD, and AliExpress, as well as Alibaba Group. "With investors favoring AI and technology-related companies in Hong Kong, Shein's appeal as a traditional e-commerce company heavily reliant on price competition is relatively limited," noted Shen Meng, director of Chinese investment bank Chanson & Co. "Rising costs due to US-China trade tensions and a less convincing growth story compared to Alibaba or PDD are likely to keep its valuation depressed."

Founded in China and headquartered in Singapore, Shein built a global fast-fashion giant through a data-driven supply chain capable of quickly producing and distributing low-cost garments directly to consumers. The company was one of the biggest beneficiaries of the e-commerce boom during the pandemic. However, its attempts to go public in the U.S. and U.K. earlier failed due to regulatory and political obstacles, leading Hong Kong to become the chosen market for its initial stock market listing.

Some investors believe there is still a risk of further declines. Shein received support from several leading investors, including Boyu Capital, Tiger Global Management, General Atlantic, Tencent Holdings Ltd., and UBS Asset Management Singapore. Existing shareholders also committed to not selling their shares acquired during the IPO for six months as a sign of confidence in the company.

Retail investor participation in the offering was 5.6 times, while institutional investors requested 2.6 times the available shares, according to the company's filing on Monday evening.