Shein shares slide in long-awaited Hong Kong trading debut

Shares of online fashion retailer Shein fell in early Hong Kong dealings on Tuesday, Business Recorder reported, as the company finally made its market debut after years of preparation. The stock opened at HK$48.56, matching the final offer price, before sliding to HK$43.8. The initial public offering raised $1.7 billion and put a $26.5 billion valuation on the company.

Strategists quoted in the report linked the weak start to Shein's slowing growth, a drop in its financial performance last year and unsettled trade policies. One analyst said the listing came at around 15 times forward earnings, more than double the multiple of PDD, a premium that was hard to justify given weaker growth visibility and regulatory risks. Another said the company is now viewed more like a retailer under margin and execution pressure than a fast-growing platform.

Institutional investors oversubscribed the offering 2.6 times and retail investors 5.6 times, a contrast the report drew with the strong demand for CXMT and Unitree. A Pepperstone research head said investor appetite across China and Hong Kong remains concentrated in AI, robotics and memory.