Shein Makes Lackluster IPO Debut on the Hong Kong Stock Exchange
On 1 September 2026, Shein made its initial public offering (#IPO) debut on the Hong Kong Stock Exchange under the ticker code 625. The Chinese fast-fashion giant that sells online directly from factory to customer went through a roller-coaster ride over the past few years, offering people affordable and near-discardable clothes, while being criticized for its social and environmental costs.
Shein (HKSE: 625) issued 280 million Class B shares and raised USD 1.74 billion of new capital. The IPO brought the market capitalization to USD 26.5 billion. However, this valuation is well below its peak valuation of USD 100 billion in 2022.
Originally, Shein aimed for a blockbuster IPO on the New York or London Stock Exchanges. In preparation for its overseas IPO, it even moved its headquarters from China to Singapore. However, the US and the UK did not approve the listing, alleging the use of ‘forced labor’ and criticizing the ‘Singapore-washing’ device to obscure its true Chinese beneficial ownership. To top it off, the China Securities Regulatory Commission did not sign off on the overseas IPO since it was displeased with Shein’s multi-year campaign to distance itself from China.
Shein intends to allocate most of the capital raised to upgrade its supply chain technology and expand its presence in the key markets of the US and the EU. The Chinese company applies #AI to track fashion trends and to make designs. The company is trialing the Shein Xcelerator program, which allows third parties to access its agile manufacturing network for a fee.
To add to its difficulty, US and EU rolled back the de minimis exemption that allowed small, low-value packages to enter the country duty-free. France even enacted a new anti-ultra-fast-fasion law, targeting Chinese platforms such as Shein, Temu and AliExpress. China’s Ministry of Commerce called out these measures as ‘discriminatory and unfair’ and vowed to take measures to safeguard its legitimate rights.
In 2025, the revenue growth rate of Shein slowed to 8%, dropping from the high of 21% in 2024. For 2025, its operating margin was squeezed to just 4%, much lower than Western competitors such as Zara (Inditex), H&M, which enjoy a comfortable margin of around 20%. PDD Holdings, the other Chinese eCommerce giant, operating under the Temu brand, managed to get listed on Nasdaq earlier, but is now facing similar headwinds as Shein.