TLDR
- Shein shares closed 0.1% below their IPO price of HK$48.56 on their Hong Kong trading debut Tuesday
- The listing values Shein at around $26 billion, down sharply from a $100 billion private valuation in 2022
- Shein raised $1.74 billion in the offering, making it Hong Kong’s largest new share issuance this year
- The Trump administration ending the de minimis exemption on small packages hit Shein’s business directly
- Revenue growth slowed to just 1.1% in Q1 2026, and the company posted a $99 million net loss
Shein made its long-awaited public debut on the Hong Kong Stock Exchange on Tuesday, and it did not go as planned. Shares fell as much as 10% in early trading before recovering slightly, closing down around 0.1% from the IPO price of HK$48.56.
Shein has gone from a $100 billion valuation in 2022 to targeting $27 billion in its upcoming Hong Kong IPO. It's hoping a pivot to acquiring higher-fashion brands will keep investors happy.@minminlow has more: https://t.co/4lYZUniIM0 pic.twitter.com/OmWd7S9LPN
— Bloomberg (@business) August 31, 2026
The fast-fashion retailer raised roughly $1.74 billion by selling about 280 million Class B shares. The listing, under stock code 00625, is the largest new share issuance on the Hong Kong exchange so far in 2026.
The debut values Shein at approximately $26 billion. That is a steep drop from the $100 billion private market valuation the company carried after a 2022 fundraising round.
Tariffs Take a Toll
A key factor behind Shein’s struggles is the end of the de minimis exemption in the United States. The Trump administration closed the loophole last summer, which had allowed goods worth under $800 to enter the country without tariffs.
For Shein, which built its business on cheap, direct-from-China shipments, this change hit hard. U.S. revenue fell 14.3% in the first quarter of 2026 compared to the same period a year earlier.
The same headwind hurt rival platform Temu, owned by PDD Holdings. PDD’s American depositary receipts dropped 31% over the past 12 months through Monday’s close.
New tariff rules in Europe have also added pressure, squeezing Shein’s margins and slowing top-line growth.
Growth Slows, Losses Mount
Shein’s finances have softened noticeably. Full-year 2025 net revenue came in at $41.8 billion, up from $38.7 billion in 2024, but revenue growth slowed to just 8% compared to 20.7% the prior year.
In Q1 2026, revenue reached $9.05 billion and growth slowed further to just 1.1%. The company also posted a net loss of $99 million, reversing a $395 million profit from the same quarter in 2025.
Some investors are waiting for second-quarter results before making a move. Brendan Ahern of KraneShares told CNBC that near-term sentiment may stay cautious until the company provides more visibility on its finances.
Shein’s CFO Leigh Gui said the company now serves around 160 markets worldwide. According to its prospectus, Shein plans to put 40% of IPO proceeds into technology and another 40% into brand building and global expansion.
The road to this listing was far from smooth. Shein had previously tried to go public in New York and London, but both attempts stalled due to regulatory pushback. Chinese regulators approved the Hong Kong offering in early July.
Gray-market trading the day before the official debut showed little enthusiasm, with shares quoted more than 10% lower at some Hong Kong brokerages before trading officially began.
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