Shein shares debuted flat on the Hong Kong Stock Exchange on Tuesday, September 1st, closing at HKD 48.50, barely below its IPO price of HKD 48.56. The stock had dropped as much as 10% during the session before recovering. With a valuation of approximately $26.3 billion, the company is now worth nearly four times less than its peak of nearly $100 billion in 2022. The retail tranche was oversubscribed only 5.63 times and the international portion 2.59 times, far from the massively oversubscribed IPOs previously seen in Hong Kong. This poor reception is explained by deteriorating fundamentals: net profit fell 39% last year and the company returned to loss in Q1 2026, largely due to the end of customs exemptions in the United States and the European Union, which caused daily active users in Europe to plunge by approximately 45%.
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