Shein is set to begin trading in Hong Kong on Tuesday, marking its long-awaited stock market debut after two previous failed attempts in New York and London.
The Chinese fast-fashion retailer will list at a valuation of around $27bn, roughly a quarter of its highest private-market valuation, reflecting the significant challenges now facing the business.
Shein will offer nearly 280 million shares priced between HK$47.60 and HK$49.50, with the company expecting to raise approximately HK$13.6bn from the offering.
The retailer first pursued a US listing in 2023, but abandoned those plans following pushback from the Securities and Exchange Commission over alleged labour malpractices and lawsuits from American competitors.
Shein then turned its attention to London, where it filed for a £50bn float, but faced pressure from MPs over a “lack of candid and open answers” regarding allegations that its supply chain was linked to forced labour and human rights abuses.
Its Hong Kong filing was initially viewed as a tactical move to pressure the UK’s Financial Conduct Authority into approving the London listing, but the company has now pressed ahead with the cut-price Hong Kong float amid growing financial and regulatory pressures.
“Appropriately enough for a business which made its name selling clothes at discount prices, Shein looks set for a cut-price IPO,” said AJ Bell investment director Russ Mould.
The firm swung to a $99m loss in the first three months of this year, compared to a net income of $395m in the year before, underlining the scale of its financial difficulties.
“[But] Shein still has strengths as a retail business, which include identifying and latching on to emerging trends at pace, significant flexibility in its supply chain and a large global customer base,” Mould added.
A major headwind for the company has been the crackdown on the so-called de-minimis tax loophole, which had previously exempted small packages from import duties and provided a significant commercial advantage to Shein and rival Chinese-owned platform Temu.
The US scrapped that exemption, and Shein acknowledged last month that the change had hit sales in that key market, with the company saying in its accounts: “In response to the increased duties and taxes, we are pursuing a wide range of options, including increasing our prices in the US market to offset a portion of the increased costs.”
The de-minimis threshold has already been closed in the EU, and the UK government is scheduled to introduce its own crackdown on the rule in October 2028.
British high street retailers including Primark and Accessorize have urged the government to bring forward the measure, which has already been accelerated by six months, potentially threatening Shein’s UK sales sooner than expected.
“That could gradually narrow the price gap between Shein and high-street rivals such as Primark and H&M, taking some of the sparkle out of its ultra-cheap offering,” said Wealth Club chief investment strategist Susannah Streeter.
Beyond regulatory headwinds, Shein is confronting a consumer landscape that has shifted considerably since the company’s rapid rise, with second-hand platforms like Vinted and eBay surging in popularity as shoppers embrace retro styles and more sustainable purchasing habits.
“Fast fashion is far less popular than it was a decade ago, with the rise of resale websites proving tough competition, given that shoppers can get their hands on higher-end brands, at a fraction of the price, to refresh wardrobes,” Streeter said.
Shein was co-founded in 2008 by Chinese entrepreneur Chris Xu, also known as Xu Yangtian, and the retailer’s IPO is being led by Wall Street heavyweights JP Morgan, Goldman Sachs and Morgan Stanley.