TLDR
- Shein shares dropped more than 10% in gray-market trading ahead of its Hong Kong Stock Exchange debut
- The company raised $1.7 billion at HK$48.56 per share, valuing it at around $26.5 billion
- This is far below Shein’s nearly $100 billion private market peak valuation in 2022
- Tariffs, competition from Temu, and slowing growth are weighing on investor confidence
- Shein posted a $99 million net loss in Q1 2026, compared to a $395 million profit a year earlier
Shein’s long-awaited Hong Kong IPO has gotten off to a rocky start. Shares of the fast-fashion retailer fell more than 10% in gray-market trading on Monday, one day before the company is set to officially list on the Hong Kong Stock Exchange.
Shein is set to go public in Hong Kong on Tuesday at just over a quarter of the $100 billion it was worth in 2022. Founder Sky Xu’s personal wealth will fall to about $8 billion, according to the Bloomberg Billionaire's Index. https://t.co/ibrfqNdWHn
— Bloomberg (@business) August 30, 2026
The company raised $1.7 billion in its IPO, pricing shares at HK$48.56 each. That gives Shein a market value of roughly $26.5 billion. Official pricing was expected to be confirmed later on Monday.
Gray-market trading happens when brokerages quote share prices before a stock officially begins trading on an exchange. At Futu Securities, Hong Kong’s largest retail brokerage by volume, Shein shares were last trading around HK$42.
A Long Way From Its 2022 Peak
Shein’s current valuation is a steep drop from where it once stood. In 2022, the company was valued at nearly $100 billion in private markets. Today, that figure is just above a quarter of that peak.
Bevis Ho, a senior analyst at Futu Securities, said investors are being cautious. He noted that markets are more interested in artificial intelligence and robotics right now than in fast fashion.
Tariff changes in the United States and Europe have hit Shein’s business model hard. The company relies on shipping low-cost goods directly to consumers, and policy changes on both sides of the Atlantic have made that harder and more expensive.
Slowing Growth and a Recent Loss
Shein’s financial results tell a difficult story. Full-year revenue in 2025 came in at $41.8 billion. But net income fell 39% to $2.06 billion.
In the first quarter of 2026, the company posted a net loss of $99 million. That compares to a profit of $395 million in the same period a year earlier.
Looking ahead, sales are expected to rise just 3.4% to $44.3 billion next year. Net income for 2026 is projected at $1.7 billion, according to Bloomberg Intelligence.
At the IPO price, Shein trades at more than 15 times forward earnings. That compares to around 7.4 times for PDD Holdings, the parent company of rival Temu, and 10.7 times for Hong Kong’s Hang Seng Index.
Temu has been gaining ground in key markets including the United States and Europe, adding pressure to Shein in the markets where it once had the most traction.
Shein has spent years trying to go public, facing regulatory hurdles in the United States before pivoting to a Hong Kong listing. The weak start in gray-market trading suggests the road ahead may still be bumpy.
The company’s Q1 2026 net loss of $99 million is the most recent signal that the business is under real financial pressure as it enters life as a public company.
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