A long road to the market
Shein's shares fell on their first day of trading in Hong Kong on Tuesday. The fast-fashion retailer made its debut after years of failed attempts to list in New York and London.
The company was once valued at about $100 billion in private funding rounds. Its public debut valued it well below that level, reflecting tougher conditions for growth stocks and rising competition in online retail.
Investors stay cautious
Shares opened lower and stayed down through the session. Analysts say investors are watching Shein's growth rate, its dependence on China-based suppliers, and regulatory pressure in the United States and Europe.
Rivals such as Temu are spending heavily to win the same customers. Trade rules for low-cost parcels are also changing, which could raise Shein's shipping costs in key markets and squeeze its thin margins.
What the listing means
Even with the weak start, the listing is one of the largest retail IPOs in Asia this year. It gives Shein access to fresh capital to fund its supply chain and expand into new regions.
Executives said the company plans to invest in local warehousing and brand building. The next test is whether Shein can keep growing fast enough to satisfy public market investors, who tend to be less patient than private backers.