Shein shares slide in long-awaited stock market debut

Shein, the fast-fashion giant, experienced a sharp decline in its shares during its long-awaited stock market debut in Hong Kong on Tuesday. The company, which had sought to list in both the US and UK previously, faced significant challenges in its journey to go public, including scrutiny over labor practices and environmental impact. Once valued at nearly $100 billion, Shein's stock is now worth around a quarter of that figure, due to various challenges including intense competition and trade tensions.

Chief financial officer Leigh Gui stated that Shein's model of selling large quantities of small orders with rapid payment options is now reaching approximately 160 markets worldwide. The company raised HK$48.56 per share during the listing, generating HK$13.6 billion ($1.7 billion; £1.3 billion) and giving it a market valuation of $26.3 billion.

However, Shein's shares declined by 8.7% on Tuesday morning, trading at 44.4 Hong Kong dollars each, indicating that the market is not confident in the company's ability to achieve further growth. According to Charu Chanana, a chief investment strategist at investment bank Saxo, investors are concerned about Shein's ability to sustain its low prices, which could lead to higher prices in the future.

Despite facing higher costs, regulatory scrutiny, and increased competition, Shein boasts over 273 million active customers who placed more than a billion orders in the year to March 2026, as reported in the company's filing ahead of the listing. This slump in shares highlights the growing skepticism towards the fast fashion industry and raises concerns about the sustainability of Shein's cheap prices.