Shein’s Hong Kong debut slides as market doubts temper the hype

Shein’s first day of trading in Hong Kong fell about 8%, valuing the company around $24 billion and well below its 2022 peak, as regulatory scrutiny and tariff changes weigh on growth and investor appetite remained tepid. The IPO was modest in demand, with the retail and international tranches only lightly oversubscribed, and cornerstone investors locked up for six months after selling roughly 6.6% of enlarged equity. Beyond the listing, Shein is expanding into a marketplace model (including the Everlane acquisition) to diversify beyond ultra-cheap in-house fashion, but higher customs duties, tariffs, and logistics costs in Europe and the Middle East are pressuring margins. Net income fell 39% last year and the company swung to a loss in Q1, while management signaled ongoing execution to widen brands and partnerships. CEO Sky Xu did not speak at the ceremony; CFO Leigh Gui spoke at the opening.