Shein Loses $73 Billion as It Debuts on Hong Kong Stock Exchange

Shein Lost $73 Billion: Chinese Giant Goes Public in Hong Kong

Shein is going public on the Hong Kong Stock Exchange with a valuation of about $26.5 billion—nearly four times lower than the record $100 billion the company reached in 2022. The online retailer raised about $1.7 billion in its IPO, and trading in its shares will begin on September 1,

Photo: AP Photo/Thibault Camus

According to Bloomberg, even before trading officially began, investors started driving down the price of Shein shares. On Monday, the company’s shares fell by about 17% on the unregulated “gray” market, indicating weak demand ahead of the debut.

Hong Kong marked Shein’s third attempt at an initial public offering. The company initially planned to go public in the U.S. but faced pressure from American lawmakers over the potential use of products from Xinjiang. Senators demanded proof that Shein’s supply chains were not linked to forced labor by Uyghurs.

The company then shifted its focus to London but failed to obtain the necessary approval from Chinese regulators. Shein filed an application for a listing in Hong Kong in the summer of 2025 and did not receive approval from the China Securities Regulatory Commission until July 2026, according to Forbes.

By the time of the IPO, Shein’s business model had faced several setbacks at once. In the U.S., the elimination of the preferential treatment for low-value shipments made direct deliveries to American customers more difficult. The U.S. Federal Trade Commission also launched an investigation into the company’s U.S. operations for potential consumer rights violations.

Pressure is mounting in Europe as well. The European Commission is investigating Shein’s activities under the Digital Services Act, and French authorities previously fined the company nearly $245 million.

At the same time, Shein must compete for customers with other Chinese platforms—primarily Temu—and global players like Amazon. Traditional retailers are also strengthening their online presence: Spain’s Inditex, which owns Zara, continues to expand its digital sales.

Thus, the Hong Kong IPO gives Shein access to the public market, but at the same time reflects a sharp drop in the company’s value compared to its peak valuations.

Back in 2022, investors valued the retailer at $100 billion, but now the market is trading its shares based on a valuation of $26.5 billion.