Shein to start trading shares in Hong Kong after long-awaited IPO

• Shein's revenue growth has slowed dramatically from 41.1% in 2023 to just 8% in 2024 and only 1.1% in Q1 2025, driven by U.S. customs duties and tariffs imposed since May 2024
• The company operates in about 160 countries with 273 million active customers, adding approximately 4,700 new styles daily across more than 2 million total apparel styles
• The IPO represents about 6.6% of Shein's enlarged share capital, with the company facing regulatory scrutiny and tariff pressures in key U.S. and European markets that threaten its low-price business model

Shein Hong Kong IPO Summary

Key Transaction Details

Chinese fast-fashion retailer Shein began trading on the Hong Kong Stock Exchange on Tuesday at HK$48.56 per share, following a years-long effort to access public markets. The IPO valued the company at approximately $26.5 billion—a dramatic decline from its 2022 peak valuation of nearly $100 billion. The offering represents about 6.6% of Shein's enlarged share capital.

Market Performance Indicators

Gray market prices quoted by Hong Kong brokerages indicated the stock trading more than 10% below its IPO price, signaling a lackluster debut. This weak reception reflects mounting challenges facing the online retailer.

Company Background and Scale

Founded in China in 2012 and headquartered in Singapore since late 2021, Shein operates in approximately 160 countries, offering ultra-low-priced clothing ($5 tops, $10 dresses). The platform served 273 million active customers in 2025 and lists over 2 million apparel styles, adding 4,700 new items daily.

Financial Performance and Challenges

Revenue growth has decelerated sharply: 41.1% in 2023, 20.7% in 2024, but only 8% in 2025 (total revenue: $41.8 billion). First-quarter 2026 revenue grew just 1.1%, primarily due to U.S. customs duties and tariffs imposed since May of the previous year.

Market Implications

Shein's business model faces fundamental threats from tariff and duty changes in key U.S. and European markets. The Hong Kong listing comes after failed attempts to go public in New York and London, reportedly due to lack of approval from Chinese authorities. The significant valuation decline and weak debut suggest investor concerns about the company's ability to navigate evolving trade policies and regulatory scrutiny.