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Shein shares slide more than 5% in Hong Kong trading second day
The fast-fashion firm closed Wednesday at HK$46, below its IPO price near HK$48.56, after an about 10% Tuesday drop that only partially reversed.
Shein shares fell more than 5% on Wednesday, a day after a lackluster debut session following its long-awaited IPO in Hong Kong, Reuters reported. The stock slid as much as 10% on Tuesday before recovering to close near its issuance level, helped by stabilisation measures that can be used for large listings to soften debut declines.
On Wednesday, Shein closed at HK$46 on its second trading day, while the Hang Seng Index finished flat. Shein raised $1.7 billion in the IPO, valuing the company at $26.5 billion, according to the report.
Investors and analysts pointed to challenges weighing on Shein’s growth outlook, including higher import duties in key markets, growing regulatory risks, and intensified competition. Brandon Ho of Arta Finance said the weak share performance reflects investors reassessing a growth story that has become harder to underwrite, citing slower revenue growth and margin pressure, as well as higher tariffs and customs costs in the U.S. and EU that weaken the economics of Shein’s low-cost cross-border model.
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