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Shein shares slide in long-awaited stock market debut
Confirmed
Shein is backed by a vast network of factories in China "For Chinese companies increasingly shut out of Western exchanges, Hong Kong is fast becoming the only realistic path to market," Louise Deglise-Favre said. The disappointing debut suggests the market is not convinced that Shein's growth can make a "comeback", said Charu Chanana, chief investment strategist at investment bank Saxo.
The retail tranche was subscribed 5.63 times, while the international portion was subscribed 2.59 times, Shein said in a stock exchange filing on Aug 31. "Shein ran out of venues that could take it," said Ashley Dudarenok, founder of Chinese market research firm ChoZan.
“The valuation reset reflects more than just slower growth,” said Li Jianggan, CEO of consultancy Momentum Works, adding that investors now regard Shein as exposed to tariffs, other regulatory risks and competition. Shein has more than 273 million active customers who placed a total of more than a billion orders in the year to the end of March 2026, the firm said in a filing ahead of the listing.
Shein has said "it takes all claims of infringement seriously" and that it respects the rights of all designers. “New markets could help offset slower growth in the US and Europe, but lower spending power in developing markets may limit the benefit if delivery costs stay high,” said Lorraine Tan, director of equity research at Morningstar.
At a ceremony to celebrate the listing, chief financial officer Leigh Gui said the company's model of selling large numbers of small orders with rapid payment options now reaches about 160 markets worldwide. In its prospectus, it said it aims to offer marketplace and supply chain services to more brands, in the footsteps of French brand Pimkie, and British brand Missguided, which it bought in 2023.
"Investors have learned to be sceptical," while concerns over sustainability and ethical issues add to the complexity of Shein's share sale, Louise Deglise-Favre said. Complete digital access to quality FT journalism with expert analysis from industry leaders.
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Check whether you already have access via your university or organisation. But Shein now faces higher costs, regulatory scrutiny and more competition, while investors are increasingly drawn towards technology companies, Charu Chanana said.
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- At a ceremony to celebrate the listing, chief financial officer Leigh Gui said the company's model of selling large numbers of small orders with rapid payment options now reaches about 160 markets worldwide.
- The disappointing debut suggests the market is not convinced that Shein's growth can make a "comeback", said Charu Chanana, chief investment strategist at investment bank Saxo.
- Shein has more than 273 million active customers who placed a total of more than a billion orders in the year to the end of March 2026, the firm said in a filing ahead of the listing .
- But Shein now faces higher costs, regulatory scrutiny and more competition, while investors are increasingly drawn towards technology companies, Charu Chanana said.
- "Investors have learned to be sceptical," while concerns over sustainability and ethical issues add to the complexity of Shein's share sale, Louise Deglise-Favre said.
- Shein has said "it takes all claims of infringement seriously" and that it respects the rights of all designers.
- "Shein ran out of venues that could take it," said Ashley Dudarenok, founder of Chinese market research firm ChoZan.
- Shein is backed by a vast network of factories in China "For Chinese companies increasingly shut out of Western exchanges, Hong Kong is fast becoming the only realistic path to market," Louise Deglise-Favre said.