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

Shein's shares fell by 4 percent in their first day of Hong Kong trading on September 1st, 2023. Investors were concerned about the impact of setbacks that delayed the listing and had undermined the company's competitive advantages. The online fast-fashion retailer, known for selling affordable clothing items, had its valuation downgraded due to tariff and duty changes in the US and Europe.

Founded in China in 2012 and headquartered in Singapore since late 2021, Shein spent years trying to list in New York and London before finally going public in Hong Kong. The company's shares traded at HK$46.62 at mid-session, down from its IPO price of HK$48.56 but recovering somewhat after an initial 10 percent drop. Shein's shares were valued at approximately US$25.3 billion, a significant decrease from its 2022 peak of nearly US$100 billion.

The company's CFO, Leigh Gui, stated that the company will continue to innovate, optimize, and cooperate with its supply chain partners for mutual benefit. However, investors and analysts remain skeptical about Shein's growth, higher trade costs, and tighter regulatory scrutiny. The IPO has helped Shein compensate early investors who invested at much higher valuations and is seen as more of a capital-structure event.