Fast-fashion giant Shein experienced a difficult start to its public trading life on Tuesday, with shares falling more than 9% during its debut on the Hong Kong Stock Exchange. The company successfully raised US$1.7 billion through the high-profile initial public offering (IPO) after previous attempts to list in London and New York were abandoned due to regulatory hurdles.
Trading opened at HK$44.00 per share, marking a decline from the initial listing price of HK$48.56. The retailer, which moved its headquarters from China to Singapore between 2021 and 2022 to mitigate global scrutiny, intends to use the capital to bolster its international presence and upgrade its technological infrastructure.
The company’s financial performance has faced significant headwinds recently. While Shein reported a net profit of US$2.06 billion for the full year of 2025, it recorded a US$99 million quarterly loss following the United States’ decision to eliminate an import duty exemption for small packages. Furthermore, the European Union recently implemented a three-euro (US$3.50) duty on items valued under 150 euros, and France is introducing a new fee on ultra-fast fashion that could reach 20 euros per garment.
Despite these challenges, Shein remains a major player in the global market. By the end of 2025, it reached 156 million average monthly users in Europe, positioning it alongside industry titans like Amazon, with 180 million users, and AliExpress, with 193 million users. The report also notes that making it one of the continent’s biggest e-commerce platforms alongside China’s AliExpress and US titan Amazon, which have 193 mill, its European customer base rose to 156 million average monthly users by the end of 2025.
Market and Regional Updates
- Major move: Apple has officially closed its flagship retail location in China.
- Market debut: China’s leading soy sauce manufacturer is preparing to begin trading in Hong Kong.
- Corporate strategy: Shein pursued a Hong Kong listing following stalled efforts in the United Kingdom.
- Consumer tactics: The retailer is currently lowering prices to regain traction with US shoppers.
- Legal outcome: The founder of Evergrande has been sentenced to life in prison by Chinese authorities.
- Legal proceedings: The trial regarding organizers of the Tiananmen vigil is currently underway.
- Environmental conditions: Hong Kong recently recorded its highest temperature in 142 years.
- Natural disaster: Typhoon Noul has triggered widespread evacuations across parts of China.
Source: Gulf News
