Shares in fast-fashion giant Shein fell by almost 10% in their highly anticipated stock market debut on Tuesday as it listed in Hong Kong after a long quest to go public.
It comes after failed attempts to list in the US and UK, as concerns were raised over issues including Shein’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 challenges like heated competition and trade tensions.
Shein has grown hugely popular, especially among younger people, 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.
In early trading on Tuesday morning, Shein’s shares were trading at 43.9 Hong Kong dollars each.
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.