Shein shares slide 10% in long-awaited Hong Kong trading debut

Hong Kong's online fashion retailer Shein saw its shares decline nearly 10% in its initial public offering trading on Tuesday. The stock debuted at HK$48.56, matching the final price set in the IPO that raised $1.7 billion and valued Shein at $26.5 billion. However, the shares quickly dropped to HK$43.8 by the end of the trading day.

Despite the decline, Shein's shares were 5.63 times oversubscribed for the retail portion and 2.59 times for the international portion. Dickie Wong, executive director of research at uSMART Securities, expressed skepticism about the IPO, noting that revenue growth remains stagnant and the funds raised are primarily returning to earlier investors.

The valuation has significantly dropped since its 2022 peak of nearly $100 billion. Shein's challenges include tariffs and regulatory risks in the U.S. and Europe, which have impacted its business operations and led to a valuation reset.