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Where did the valuation settle on day one?

Shein’s IPO was completed in Hong Kong after a long search for a stock exchange, but the first day was volatile. The shares fell as much as 10% intraday before trimming losses and closing down 0.12% at HK$48.50. That close left the company valued at roughly $26.15 billion.

Shein priced its shares on Monday at HK$48.56, raising HK$13.6 billion, or about $1.7 billion. At the time of pricing, the company was valued at around $26.3 billion. That compares with the nearly $100 billion valuation it was attributed just a few years ago.

The listing stood out as Hong Kong's biggest new share sale so far this year. The deal is being seen as both a test of investor appetite for fast fashion and a measure of the risks tied to Shein's business model.

What do the company's scale and growth figures show?

Shein was founded in China and has been headquartered in Singapore since 2021. It grew by offering low-cost, fast-turnaround products through a vast network of factories in China, especially among younger shoppers. Company executives say that model now reaches about 160 markets.

In its pre-listing filing, the company said it had more than 273 million active customers in the 12 months ending March 2026. It also said total orders during the same period topped 1 billion.

  • Active customers: More than 273 million
  • Total orders: More than 1 billion
  • Markets served: About 160

What risks are investors pricing in?

Earlier attempts by the company to go public in the US and the UK came to nothing amid concerns over supply-chain practices, environmental impact and ethical issues. Shein says it has a zero-tolerance policy toward forced labor, but regulatory scrutiny in the US and Europe shows pressure on the company remains.

Cost pressure and competition are rising

Market experts say higher costs, tighter regulation and intensifying competition could strain Shein's low-price strategy. The company reported a quarterly loss of $99 million in July after sales growth slowed following the end of a US tax exemption for small parcels. The US “de minimis” exemption for packages worth less than $800 had played a key role in the rapid growth of platforms such as Shein and Temu.

The European Union's €3 levy on low-value imports is also adding to cost pressure. The company also said demand weakened in some markets because of the war in Iran, while costs rose and deliveries were delayed. Analysts say Shein is no longer seen as the only player that clearly stands apart from rivals, which is prompting a more cautious market valuation.

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