How Shein lost its shine ahead of long-awaited stock market debut
The firm's Hong Kong listing on Tuesday comes after a years-long quest to sell shares in New York and London.
Fast-fashion giant Shein is set to make its highly anticipated stock market debut on Tuesday as it lists in Hong Kong after a years-long quest to go public.
It comes after failed attempts to list in the US and UK, as concerns were raised over issues including the firm's labour practices and its environmental impact.
Once estimated to be worth nearly $100bn (£74bn), Shein is now valued at around a quarter of that figure, as the firm faces other issues like increased competition and global trade tensions.
Shein has grown hugely popular, especially with younger customers, due to its ability to source the very latest fashions at ultra-low prices through a vast network of factories in China.
On Monday, Shein priced its shares at HK$48.56 each, raising 13.6 billion Hong Kong dollars ($1.7bn; £1.3bn) from the listing.
That gave the company a stock market valuation of $26.3bn.
Founded in China and now headquartered in Singapore, Shein operates a global e-commerce network, with sales in more than 150 countries.
Shein has 281 million active customers who placed a total of more than a billion orders in the year to the end of March 2026, the company said in a filing ahead of the listing.
But its business model has come under intense scrutiny over environmental and human rights concerns, while US and European Union crackdowns on cheap imports are squeezing its finances.
The stock market debut comes at a "complex moment" as investors grow sceptical over the performance of fast-fashion companies, said Louise Deglise-Favre from research firm GlobalData.
A benchmark for fast fashion
The listing marks the largest new share sale in Hong Kong so far this year, which is being seen as a test of investor appetite for the fast fashion industry.
It is a rare "standalone" e-commerce firm that can be assessed on its own merits, fashion industry analyst Deglise-Favre said.
"Investors have learned to be sceptical," while concerns over sustainability and ethical issues add to the complexity of Shein's share sale, Deglise-Favre said.
The rise and rise of fashion giant Shein
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Shein's long road to the stock market highlights the geopolitical pressures and regulatory scrutiny faced by Chinese companies with global ambitions.
The company once looked set for one of the largest stock market debuts ever by a Chinese firm, with Wall Street in its sights.
Its business had surged during the Covid-19 pandemic as people, stuck at home, turned to online retailers.
Shoppers shared clips of themselves trying on large numbers of its garments, a trend called Shein Hauls, boosting the company's online presence.
An initial public offering (IPO) in the US - by far Shein's largest market - would have offered it a chance to further increase its global profile and tap into Western financing.
But the firm faced resistance from US lawmakers, who objected to the planned listing over concerns of forced labour in Shein's factories. In response to such allegations, the company has said it takes a "zero-tolerance policy for forced labour".
It has also been accused of copying other designers' ideas. Shein has said "it takes all claims of infringement seriously" and that it respects the rights of all designers.
Shein also explored the possibility of making its stock market debut in London but faced similar opposition.
The BBC has contacted Shein for further comment.
'Only realistic path'
In 2025, Shein shifted its attention to Hong Kong, with Chinese authorities approving the move in July this year.
"Shein ran out of venues that could take it," said Ashley Dudarenok, founder of Chinese market research firm ChoZan.
The company attempted to "look less Chinese" by shifting its headquarters to Singapore ahead of its IPO bid, but it never won political backing abroad nor assurances from Beijing, she added.
"For Chinese companies increasingly shut out of Western exchanges, Hong Kong is fast becoming the only realistic path to market," Deglise-Favre said.
The move also coincided with Shein's publicity-shy founder Xu Yangtian making a rare public appearance during a major business conference in February.
Xu took to a stage in Guangdong, home to many of China's garment factories, to re-affirm his company's ties to Beijing.
He pledged investments in China's clothing industry, adding that the "nourishment" from the country has been "inseparable" from Shein's success.
