Shein’s shares fell by as much as 10% in early trading before the losses eased, closing around 3.5% lower at just under HK$47 per share — the disappointing debut signals uncertainty about the company’s ability to maintain growth, according to analysts. Charu Chanana, chief investment strategist at investment bank Saxo, said the market is not convinced that Shein’s growth can make a ‘comeback.’

Market Valuation and IPO Details

Shein raised about $1.7 billion in its initial public offering in Hong Kong, landing at a market value of roughly $26 billion. This is significantly lower than its 2022 private funding round, which valued the fast-fashion group at nearly $100 billion. Shares were priced at HK$48.56, near the middle of the marketed range. Cornerstone investors, including Boyu Capital, Tiger Global, and Tencent, took roughly $383 million worth of stock.

Despite these names on the register, demand stayed muted: margin-financed subscriptions covered the deal about 4.66 times, according to China Daily. This is much lower than the 3,842 times cover for robotics company Mech-Mind in the same window.

Challenges and Market Conditions

Shein now faces higher costs, regulatory scrutiny, and more competition, according to Charu Chanana. Investors are increasingly drawn towards technology companies. Louise Deglise-Favre from research firm GlobalData noted that the listing marks the largest new share sale in Hong Kong so far this year and is seen as a test of investor appetite for the fast fashion industry.

The company has more than 273 million active customers who placed a total of more than a billion orders in the year to the end of March 2026, according to a filing ahead of the listing. However, Shein has been humbled by tariff and duty changes in the U.S. and Europe, according to Reuters. The prospectus also shows that Shein posted revenue of about $41.8 billion in 2025, up eight percent, while net profit fell from $3.37 billion to $2.06 billion over the same period, a drop of almost 39 percent.

Regulatory and Political Hurdles

Shein’s Hong Kong debut follows a long process after it first filed confidentially for a U.S. IPO in 2023 before turning to London. However, Beijing withheld approval over risk disclosures tied to its China supply chain, effectively blocking the listing, according to CNBC. The company’s long road to the stock market highlights the geopolitical pressures and regulatory scrutiny faced by Chinese companies with global ambitions.

Hong Kong Exchanges and Clearing will launch options and allow short selling of Shein shares from their trading debut on Tuesday, according to Reuters. The company’s shares are set to begin trading under stock code 00625. Meanwhile, concerns over sustainability and ethical issues add to the complexity of Shein’s share sale, Deglise-Favre said.