Shein shares slide on fast-fashion retailer’s stock market debut Shares in the fast-fashion brand Shein slumped as much as 10% on its long-awaited debut on the Hong Kong stock exchange, marking a significant setback for the China-founded company. The Singapore-headquartered firm, once valued at nearly $100 billion, priced its shares at HK$48.56, valuing the business at just over $26 billion. However, the stock fell sharply in the minutes following the flotation, which raised HK$13.6 billion, pushing the company’s valuation below $25 billion. By the end of trading, the share price had recovered slightly to HK$46.62, a 4% discount from the offer price. The lackluster market response highlights the challenges Shein faces as it transitions to a publicly traded company. This comes after years of failed attempts to list in the United States and United Kingdom, where regulatory scrutiny over its supply chain and labor practices stalled plans. Shein had previously considered a £50 billion flotation in London but faced similar concerns from campaigners, lawmakers, and investors. The company’s decision to pivot to Hong Kong reflects its strategy to navigate global regulatory hurdles while maintaining its business model. A key factor behind the share price drop is the tightening of international regulations targeting Shein’s business model. The company relies on shipping goods in small, low-value packages from China to exploit tax breaks on imported goods. However, regulatory changes in major markets have disrupted this strategy. In the United States, the removal of the “de minimis” import duty exemption on small packages has significantly impacted Shein’s sales. Similarly, the European Union introduced a €3 customs duty on small parcels imported from outside the bloc in June, with plans to phase out the loophole entirely.#hong_kong #singapore #shein #chris_xu #hong_kong_stock_exchange
