Shein Plunges 7% on First Day of Hong Kong Listing... Where Did Its $100 Billion Valuation Go?

▲ Shein/AI-generated image

Shein's corporate value, which once reached $100 billion, shrank to $26.5 billion after the company's shares plunged 7% on its first day of listing on the Hong Kong stock market.

According to CNBC on September 1 (local time), Singapore-headquartered Shein raised HK$13.6 billion, or approximately US$1.74 billion, by selling about 280 million shares through its Hong Kong Initial Public Offering (IPO). The final offering price was HK$48.56 per share, falling short of the top desired price of HK$49.5. At the time of listing, its corporate value was estimated at approximately $26.5 billion. This is about a quarter of the $100 billion valuation it received in the private market in 2022.

Brendan Ahern, Chief Investment Officer at KraneShares, suggested that investors might adopt a cautious stance towards Shein in the short term. He mentioned the possibility that some investors might wait and see until Q2 results and financial conditions become clearer. Shein grew rapidly targeting consumers in the US and Europe, but changes in tariff policies in both markets have become a burden. Ahern pointed out that revenue growth is slowing and profitability is also under pressure.

Phillip Wool, Head of Research at Rayliant Global Advisors, evaluated that Shein "missed its IPO opportunity." He explained that investor interest has shifted from e-commerce to artificial intelligence (AI), and there is increased direct pressure on its US and European operations. Wool pointed to slowing growth, stating, "The biggest problem is that we are facing direct headwinds in competing in the US and Europe." He added, "Although the corporate value has decreased, it's hard to consider the stock cheap even based on the offering price."

Shein's Hong Kong listing came after its attempts to list on the US and UK stock markets failed. Shein, founded in China, moved its headquarters to Singapore in 2022 and confidentially filed for a US IPO in 2023. It later shifted its focus to a London listing but failed to secure approval from Chinese authorities due to issues surrounding the disclosure of risks related to its Chinese supply chain. Shein plans to allocate 40% of the IPO proceeds to strengthening its technological capabilities, 40% to enhancing brand awareness and expanding global operations. The remainder will be used for corporate responsibility initiatives and general corporate operations.

Performance is also a key area that investors are focusing on. Shein's net revenue for 2025 increased to $41.8 billion, up from $38.7 billion in the previous year. However, its revenue for the first quarter of this year was $9.05 billion, but it reported a net loss of $99 million, turning from a profit in the same period last year to a deficit. Shein cited the fair value loss of convertible redeemable preferred shares as the main reason for the Q1 deficit.

[Article Summary]

- Shein raised $1.74 billion in its Hong Kong IPO, but its stock price fell 7% on the first day of listing.

- Its corporate value plummeted from $100 billion in 2022 to $26.5 billion at the time of listing, with tariff changes in the US and Europe and slowing growth cited as burdens.

- Shein recorded net revenue of $41.8 billion in 2025 but turned to a net loss of $99 million in the first quarter of this year.

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