Shein ranks among worst major Hong Kong IPO debuts

Highlights

Shein has lost about $5 billion in market value.
Shares remain 19% below the HK$48.56 IPO price.
Market capitalization has fallen to about $21 billion.
First-quarter losses reached $99 million.

Shein shares rose 3.2% on Monday, their first gain since the listing, but still finished 19% below the HK$48.56 IPO price, Bloomberg reported. The decline reduced the company’s market capitalization to roughly $21 billion from about $26 billion when it went public.

A difficult first week in Hong Kong

Among companies that raised at least $1 billion in a Hong Kong listing, Shein recorded the second-worst performance over the first five trading sessions. Only Baidu performed worse, falling 19.9% over the comparable period.

Weakness was visible from Shein’s debut. The stock dropped as much as 10% during its first session and traded below the offering price for much of the day before recovering to HK$48.50, leaving it just 0.1% lower at the close.

The listing completed a years-long effort by Shein to reach public markets, but it has not removed the concerns that complicated that process. Investors are weighing higher tariffs, changes to de minimis trade rules, rising fulfillment expenses, and tougher regulatory scrutiny alongside increasing competition in global e-commerce.

Shein is also entering public markets at a very different point in its growth cycle. Revenue increased 8% in 2025, down sharply from 21% growth in 2024 and below the company’s target.

Profitability adds to investor concerns

The deterioration in earnings has added another challenge. Shein reported a $99 million loss in the first quarter, reversing a $395 million profit in the same period a year earlier.

That shift matters because Shein was once valued at around $100 billion during the pandemic-driven e-commerce boom. Its current market value of roughly $21 billion represents a dramatic reassessment of the company as investors demand clearer evidence that revenue growth can translate into sustainable margins.

At the same time, investor attention has increasingly moved toward artificial intelligence, robotics, and other technology businesses, making it harder for conventional e-commerce companies to command the valuations seen earlier in the decade.

A tougher test for Shein after the IPO

The first week leaves Shein facing a challenge that completing the IPO itself could not solve: convincing public-market investors that its business can regain momentum despite higher trade barriers and rising operating costs.

The gap between its former $100 billion valuation and its current $21 billion market capitalization illustrates how sharply expectations have changed. Monday’s 3.2% rebound provided some relief, but with the shares still 19% below their IPO price, investors remain cautious about Shein’s growth and profitability.

We also reported OpenAI expands pre-IPO liquidity with a $7 billion share sale.

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