Shares in Shein dropped almost 9% on the first day of trading, pushing the fast‑fashion start‑up’s market value down to around $26 billion – a fraction of the $100 billion the company had been expected to command.
After years of failed attempts to list in the US and UK due to concerns over forced labour and environmental impact, Shein finally went public in Hong Kong at HK$48.56 per share.
The debut also highlighted the company’s exposure to regulatory scrutiny, rising costs, and intensified competition from rivals such as Asos and Boohoo.
Analysts note that the steep drop signals growing scepticism over Shein’s ability to sustain its low‑price model and deliver profit in a tightening regulatory landscape.
Despite the challenges, Shein’s vast network of factories and the persistent demand for inexpensive fashion suggest the brand may still find ways to adjust its strategy and improve margins.
