Fast-fashion giant Shein’s shares fall after Hong Kong trading debut that spotlights its China roots
Summary
Shares of Shein, a fast-fashion online retailer, dropped about 10% after its first day of trading on the Hong Kong stock market. The company raised around $1.7 billion in its initial public offering, but increasing tariffs and higher costs have hurt its profits.Key Facts
- Shein’s shares fell roughly 10% on their first day in Hong Kong.
- The company raised $1.7 billion by selling shares at HK$48.56 ($6.19) each.
- Shein’s business depends on delivering cheap, fast fashion from China to Western customers.
- New tariffs in the U.S. and EU on low-value goods from China increased costs for Shein.
- Higher shipping costs, partly due to the Iran conflict, also hurt Shein’s profits.
- Shein reported a $99 million loss in early 2026, compared to a $395 million profit in early 2025.
- Shein moved its headquarters from China to Singapore around 2021 but returned to list shares in Hong Kong.
- The company benefits from a unique supply chain system in Guangdong province, China, where it started.
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