Shein’s value down US$5 billion, among HK’s worst post-IPO weeks
The fall underscores investor concerns over the fast-fashion retailer’s growth outlook
Shein, the fast-fashion retailer, has experienced a US$5 billion decline in market value since its initial public offering, marking one of the worst opening weeks for a major Hong Kong listing. The company's shares closed 19% below the HK$48.56 offering price, down to about US$21 billion from a US$26 billion valuation. Despite a 3.2% rise on Monday, the stock remains 19% lower than its initial offering price.
This performance, the second-worst five-day drop among IPOs raising at least US$1 billion in Hong Kong, underscores investor concerns over Shein's growth outlook. The company's market value has dropped significantly from its pandemic-era valuation of US$100 billion. Challenges such as slowing expansion, higher trade barriers, and increased competition have contributed to the decline.
Analysts attribute the selloff to company-specific issues, but also to broader skepticism toward cross-border e-commerce models in the face of tariffs and tighter regulations. The shift toward AI and technology stocks has further exacerbated Shein's weakness. Despite a brief rebound, the stock remains down 0.1% at HK$48.50, trading below the offer price for most of the trading session.
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