Shein‘s debut on the Hong Kong Stock Exchange this Tuesday (1) saw significant swings. The shares fell as much as 10% early in the session, trading at HK$ 43.72 amid heavy selling pressure, when buy orders were three times larger than sell orders.
Over the course of the day, the Chinese retailer’s shares recovered and finished virtually flat, closing at HK$ 48.50, just 0.1% below the IPO price of HK$ 48.56. The initial public offering raised HK$ 13.6 billion (approximately US$ 1.7 billion), valuing the company at close to US$ 26 billion. That figure is far from the valuation of nearly US$ 100 billion recorded in private funding rounds in 2022.
Listing Context and Recent Performance
Shein’s move in Hong Kong follows failed attempts to go public in other markets, such as New York and London. On those occasions, concerns about China’s macroeconomic risks prevented the plans from moving forward.
The Hang Seng index, the Asian exchange’s main benchmark, fell 0.9% in the same session in which Shein debuted.
According to the IPO prospectus, the company projects net revenue of US$ 38.7 billion for 2024, expected to grow to US$ 41.8 billion in 2025. In the first quarter of 2026, revenue reached US$ 9.05 billion, but the company reported a loss of US$ 99 million, reversing the profit posted in the same period a year earlier. The decline was attributed to accounting losses related to convertible preferred shares.
Use of Proceeds and Leadership’s Stance
Of the funds raised in the IPO, Shein plans to allocate 40% to technology investment and another 40% to expanding its brand and global presence. The remainder will go to corporate initiatives.
At the exchange’s opening ceremony, the company’s chief financial officer, Leigh Gui, gave a speech. Shein founder Sky Xu, who usually avoids public appearances, did not speak but posed for photos with employees.
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