{
  "id": 7287065,
  "title": "Shein shares drop to lowest since IPO amid ‘underperform’ rating, contact-lens recall",
  "url": "https://urgent.news/2026/09/14/shein-shares-drop-to-lowest-since-ipo-amid-underperform-rating",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-14T09:18:22.000Z",
  "source": {
    "name": "SCMP Tech",
    "slug": "scmp-tech",
    "url": "https://www.scmp.com/tech/tech-trends/article/3367453/shein-shares-drop-lowest-ipo-amid-underperform-rating-contact-lens-recall"
  },
  "original_language": "en",
  "account": "Shein Global Holdings experienced a steep decline in its shares, dropping to their lowest level since the company's initial public offering two weeks earlier. The Hong Kong shares saw a 10% drop on Monday, with the stock closing at HK$36.40, marking the lowest price since Shein debuted on the exchange on September 1st. The once-prominent fast-fashion giant is now 25% lower than its IPO price of HK$48.56.\n\nJefferies, in its latest research, gave Shein an \"underperform\" rating, targeting a price of HK$26 per share. This assessment suggests further downside potential for the stock. The rating downgrade was attributed to the company's competitive moat, which was once its speed in delivering new items to customers. However, analysts predict that the advantages of low-cost parcels, Guangdong's supplier density, and supplier-funded experimentation would become more expensive.\n\nThe company's market capitalization is now HK$155 billion, a sharp contrast to its peak valuation of nearly US$100 billion in 2022 and its Series D+ funding valuation of around US$64 billion in 2023. Jefferies analysts highlighted that Shein's earnings power is significantly impacted by the reset in low-value parcel rules in the US and EU, with both regulators imposing tariffs on such imports, increasing operational costs.\n\nAdding to Shein's woes, a contact lens recalled in both Australia and New Zealand due to potential contamination with Burkholderia cepacia complex bacteria. The recalled products, primarily used for cosplay and makeup, might pose a risk of eye infection or irritation. This incident, reported in the United Kingdom, involved a user who developed an eye infection. Shein has not yet responded to requests for comment on the matter.",
  "summary": "Shein Global Holdings saw its shares plummet to their lowest level since listing two weeks ago, falling as much as 10 per cent in Hong Kong trading on Monday, slammed by an “underperform” rating from Jefferies and product safety recalls in Australia and New Zealand. Shein closed down 9 per cent to HK$36.40 on Monday, the lowest since its September 1 debut on the Hong Kong stock exchange. The…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}