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What happened in early Hong Kong trading?

Shein shares fell sharply on their first trading day in Hong Kong, following the company’s long-awaited stock market debut. The shares, priced at HK$48.56 each on Monday, dropped as low as HK$43.9 in early Tuesday trading.

At that price, the company raised HK$13.6 billion from the listing. The deal was also the biggest new share sale in Hong Kong so far this year.

The numbers show the scale of the business

Founded in China and now headquartered in Singapore, Shein runs a global e-commerce network that operates in more than 150 countries. According to the company’s listing documents, 281 million active customers placed more than 1 billion orders in the year ending March 2026.

Even so, its market value remained far below levels discussed in the past. The company, once valued at about $100 billion, had a post-listing market capitalization of $26.3 billion.

Why has the valuation come under pressure?

Shein’s attempts to go public in the U.S. and the U.K. had failed. During that period, concerns over labor practices, environmental impact and its business model weighed on investor sentiment.

Regulatory and trade pressures are mounting

  • In the U.S., the removal of the de minimis rule for small parcels, which had provided a tax advantage for shipments worth less than $800, has added cost pressure on Shein and rival Temu.
  • The European Union has also imposed a 3-euro charge on low-value imports.
  • The company said weaker demand in some markets, higher costs and delivery delays were linked to the war in Iran.

Shein reported a $99 million loss for the quarter in July after sales slowed. The company is also facing regulatory reviews of its business practices in the U.S. and Europe.

What risks will investors watch next?

GlobalData analyst Louise Deglise-Favre said the listing is an important test of investor appetite for the fast-fashion sector. Sharp declines in the shares of rivals such as Asos and Boohoo in recent years have also reinforced caution toward the industry.

Analysts say Shein’s strong supply chain and global reach are major advantages. But investors will now focus on whether the company can preserve profit margins under tighter regulation, tariffs and rising customer acquisition costs.

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