Shein shares slip more than 3% on second day of Hong Kong trading

Business Recorder reported that Shein shares fell more than 3% on Wednesday, a day after a subdued first session in Hong Kong following its long-anticipated listing. On Tuesday the stock dropped as much as 10% during trading before paring losses to near its HK$48.56 offer price. Early on Wednesday the shares changed hands at HK$46.94, while the Hang Seng Index was about 0.9% lower.

According to a source and analysts, the late Tuesday rally came from stabilisation steps that can be used on large new listings to limit steep falls on the first trading day. The offering brought in $1.7 billion and valued the company at $26.5 billion, roughly a quarter of its 2022 peak near $100 billion.

Investors and analysts pointed to heavier tariffs in big markets, expanding regulatory exposure and tougher rivalry as drags on expansion. Brendon Ho of Arta Finance argued that investors are reconsidering a growth narrative that is now tougher to back, with sales growth slowing, margins under strain and higher US and EU customs costs weakening the appeal of its low-cost cross-border model.