Shein shares slide in long-awaited stock market debut

Fast-fashion giant Shein is set to make its highly anticipated stock market debut on Tuesday as it lists in Hong Kong after a years-long quest to go public.

It comes after failed attempts to list in the US and UK, as concerns were raised over issues including the firm's labour practices and its environmental impact.

Once estimated to be worth nearly $100bn (£74bn), Shein is now valued at around a quarter of that figure, as the firm faces other issues like increased competition and global trade tensions.

Shein has grown hugely popular, especially with younger customers, due to its ability to source the very latest fashions at ultra-low prices through a vast network of factories in China.

On Monday, Shein priced its shares below the top end of their marketed range, raising ‌13.6 billion Hong Kong dollars ($1.7bn; £1.3bn) from the listing.

That gave the company a stock market valuation of $26.3bn.

Founded in China and now headquartered in Singapore, Shein operates a global e-commerce network, with sales in more than 150 countries.

Shein has 281 million active customers who placed a total of more than a billion orders in the year to the end of March 2026, the company said in a filing ahead of the listing.

But its business model has come under intense scrutiny over environmental and human rights concerns, while US and European Union crackdowns on cheap imports are squeezing its finances.

The stock market debut comes at a "complex moment" as investors grow sceptical over the performance of fast-fashion companies, said Louise Deglise-Favre from research firm GlobalData.

Shein's long road to the stock market highlights the geopolitical pressures and regulatory scrutiny faced by Chinese companies with global ambitions.

The company once looked set for one of the largest stock market debuts ever by a Chinese firm, with Wall Street in its sights.

Its business had surged during the Covid-19 pandemic as people, stuck at home, turned to online retailers.

Shoppers shared clips of themselves trying on large numbers of its garments, a trend called Shein Hauls, boosting the company's online presence.

An initial public offering (IPO) in the US - by far Shein's largest market - would have offered it a chance to further increase its global profile and tap into Western financing.

But the firm faced resistance from US lawmakers, who objected to the planned listing over concerns of forced labour in Shein's factories. In response to such allegations, the company has said it takes a "zero-tolerance policy for forced labour".

It has also been accused of copying other designers' ideas. Shein has said "it takes all claims of infringement seriously" and that it respects the rights of all designers.

Shein also explored the possibility of making its stock market debut in London but faced similar opposition.

The BBC has contacted Shein for further comment.

Its rivals are feeling the pressure too. In August, Temu-owner PDD reported lower-than-expected quarterly revenue.

Shein is also being investigated by US and European regulators over its business practices.

Despite these challenges some analysts still see strong potential for Shein.

Investors will be scrutinising whether the company can navigate theses issues, such as shifting logistics out of China to avoid the US and EU's import fees, Deglise-Favre said.

The slump in the firm's valuation shows "genuine deterioration", but it is still backed by a "formidable supply chain" and a global reach, she added.

People are still buying the company's goods, but costs have weighed on its business and have shown that its business model does not generate profits in the way it once did, said Dudarenok.

As a publically-listed company, Shein will need to "prove its margins still work in a world of tighter regulation, tariffs and more expensive customer acquisition," she added.