Nominal 
{Economic Information Daily reporters Wang Zeyan, Ma Bendu, 25th report} Global fast fashion giant SHEIN (00625) officially launched its Hong Kong share offering yesterday after previous attempts to list in the US and London were blocked, planning to debut on the Main Board of the Hong Kong Stock Exchange on September 1. However, SHEIN's valuation has plunged over 70% from its peak to approximately US$27 billion, and its profitability has significantly deteriorated, recording a net loss in the first quarter of this year. Experts pointed out directly that SHEIN's fundamentals are mediocre and its e-commerce business is declining, advising investors to remain cautious and refrain from actively subscribing to the new shares for potential gains.
*Failed listings in US and UK, CSRC refuses to approve*
SHEIN's listing journey has been full of twists and turns. As early as 2020, market rumors first emerged that it was preparing for a US IPO, but the plan was temporarily shelved due to Sino-US tensions and the pandemic. In January 2022, rumors resurfaced that SHEIN had restarted its US listing plans and had hired Bank of America, Goldman Sachs, and JPMorgan Chase to handle the IPO. In February of the same year, it was revealed that SHEIN had changed its holding entity to Singapore-based Roadget Business Pte. Ltd. by the end of 2021, making the latter the legal entity for SHEIN's global website; founder Xu Yangtian had also obtained Singapore permanent residency. In November 2023, SHEIN hired Goldman Sachs, JPMorgan Chase, and Morgan Stanley as lead underwriters and formally submitted a confidential IPO application to the US Securities and Exchange Commission (SEC), targeting a maximum valuation of US$90 billion, but its US listing plan ultimately failed.
On one hand, SHEIN faced joint pressure from US congressmen and state attorneys general demanding thorough investigations into its labor rights and supply chain issues. On the other hand, although SHEIN had relocated its headquarters to Singapore, its supply chain remains heavily concentrated in China. According to new Chinese regulations on overseas listings, SHEIN still needed to file for overseas listing with the China Securities Regulatory Commission (CSRC). Caught between actions from both the US and China, SHEIN's US listing plan came to nothing.
Under investor pressure, SHEIN could not abandon its listing plans and thus turned its attention to the UK in early 2024, attempting to seek a London listing. At that time, SHEIN engaged intensively with UK authorities and secretly submitted a draft prospectus to the UK Financial Conduct Authority (FCA) in June of the same year, reportedly targeting a valuation of about £50 billion (approximately US$63.7 billion). Unfortunately, this British venture encountered political and market resistance by year-end. With the UK Labour Party coming to power, SHEIN faced strong scrutiny from multiple parties regarding its labor rights and supply chain transparency. Additionally, the EU's plan to eliminate the tax exemption threshold for imported packages under 150 euros and other tariff policies created significant uncertainty for SHEIN's business outlook. SHEIN ultimately did not list in the UK, with the primary reason still lying in the Chinese government's stance; reports indicated that the CSRC's approval process for SHEIN's UK listing备案 was also slow.
After consecutive setbacks in the US and UK, SHEIN shifted its focus to the Hong Kong market in July 2025, submitting a confidential listing application to the Hong Kong Stock Exchange. Given the closer financial ties between Hong Kong and mainland China, SHEIN finally obtained the CSRC's overseas listing备案 approval notice and, half a month later on July 26, passed the Hong Kong Stock Exchange Listing Committee's hearing and updated its post-hearing documents. This six-year-long IPO journey, which spanned three major financial centers, has finally entered its final sprint stage.
*Valuation collapse one month before share offering*
However, SHEIN has missed its optimal listing timing. Currently, Western countries are closing loopholes for tax-free small parcel imports, competition among Chinese e-commerce players expanding overseas has intensified, and capital is increasingly favoring the AI industry chain over internet platforms, causing SHEIN's valuation to significantly decline. The prospectus shows that SHEIN is offering approximately 280 million shares to the public at a price range of HK$47.60 to HK$49.50 per share, raising about US$1.77 billion, corresponding to a total market valuation of nearly US$27 billion—over 70% lower than its historical peak valuation of nearly US$100 billion in April 2022.
Even during the Hong Kong IPO period, SHEIN's target valuation has undergone multiple clear downward revisions. In July, when SHEIN was pushing for its Hong Kong listing, market rumors suggested a target valuation of US$40-50 billion. Then, during roadshows in early August, Reuters reported that investors were discussing a further reduced range of about US$30-40 billion. Around August 17, Reuters disclosed again that the target valuation had further dropped to a range of US$26-28 billion.
Accompanying this valuation reduction is a significant decline in SHEIN's profitability. Prospectus data shows that SHEIN's net revenue growth has notably slowed: net revenue reached US$32.103 billion in 2023, a year-on-year increase of 41.1%; in 2024, the growth rate declined to about 20.7%; in 2025, it further plummeted to about 8%; and in the first quarter of 2026, net revenue was US$9.052 billion, up only 1.1% year-on-year. At the same time, the company's profit performance faces immense pressure: net profit increased from US$2.789 billion in 2023 to US$3.365 billion in 2024, but sharply declined to US$2.064 billion in 2025, with net profit margin shrinking from 8.7% to 4.9%, and even recording a net loss of US$99 million in the first quarter of 2026, turning the net profit margin directly to negative 1.1%.
*Cheung Chi Wai: No attraction seen in SHEIN's listing*
Cheung Chi Wai, Joint Director at Sun Hung Kai Securities, told {Economic Information Daily} that SHEIN's shift to Hong Kong is clearly because it 'has no other choice but to come to Hong Kong,' with its core business (especially e-commerce) in decline, mediocre fundamentals, and a repeatedly downgraded valuation, making it unattractive.
In its prospectus, SHEIN stated that the significant drop in net profit in 2025 was mainly due to changes in the company's valuation, leading to a shrinkage in the fair value of convertible redeemable preferred shares; while the loss in the first quarter of 2026 was due to a US$328 million fair value loss on preferred shares, which offset the company's first-quarter profits.
Mak Ka Ka, Head of Financial Products Trading and Head of Research at Grand Financial Securities (Asia), told {Economic Information Daily} that fast fashion is currently not a focus for capital, coupled with a relatively small issuance size and low market attention. Additionally, potential impacts from US parcel-related freight or tariff policies could further hit its business.
*Mak Ka Ka: Not worth subscribing for gains*
This policy originated from Trump's cancellation of the de minimis tariff exemption on August 29 last year, eliminating tariff exemptions for imports from China, Mexico, and Canada valued below US$800, with transitional arrangements requiring senders to pay fixed tariffs ranging from US$80 to US$200 per item based on the country of origin. Earlier, the US Court of International Trade (CIT) in New York ruled that the president has the authority to suspend duty-free import privileges for goods with a retail value not exceeding US$800. Trump also called this ruling a 'major victory' on his Truth Social platform.
SHEIN stated that due to the double blow of the US cancellation of China's small-quantity goods tax exemption policy and additional tariffs, its US business performance from the second half of 2025 to the first quarter of 2026 has already been negatively impacted. The prospectus shows that net revenue in the US market was US$2 billion in the first quarter of this year, down 14.3% year-on-year from US$2.4 billion in the same period last year.
Cheung Chi Wai believes that although the initial subscription cost is not expensive, speculative small bets might have a chance of gains, but investors should not expect strong market demand or a sharp stock price surge, as it is not that kind of hot new stock. Mak Ka Ka also stated that SHEIN's current Hong Kong listing has limited upside potential, and her overall view is neutral. She advises investors to remain on the sidelines, as actively subscribing to the new shares for potential gains may not be worthwhile given the low value proposition.
*Failed listings in US and UK, CSRC refuses to approve*
SHEIN's listing journey has been full of twists and turns. As early as 2020, market rumors first emerged that it was preparing for a US IPO, but the plan was temporarily shelved due to Sino-US tensions and the pandemic. In January 2022, rumors resurfaced that SHEIN had restarted its US listing plans and had hired Bank of America, Goldman Sachs, and JPMorgan Chase to handle the IPO. In February of the same year, it was revealed that SHEIN had changed its holding entity to Singapore-based Roadget Business Pte. Ltd. by the end of 2021, making the latter the legal entity for SHEIN's global website; founder Xu Yangtian had also obtained Singapore permanent residency. In November 2023, SHEIN hired Goldman Sachs, JPMorgan Chase, and Morgan Stanley as lead underwriters and formally submitted a confidential IPO application to the US Securities and Exchange Commission (SEC), targeting a maximum valuation of US$90 billion, but its US listing plan ultimately failed.
On one hand, SHEIN faced joint pressure from US congressmen and state attorneys general demanding thorough investigations into its labor rights and supply chain issues. On the other hand, although SHEIN had relocated its headquarters to Singapore, its supply chain remains heavily concentrated in China. According to new Chinese regulations on overseas listings, SHEIN still needed to file for overseas listing with the China Securities Regulatory Commission (CSRC). Caught between actions from both the US and China, SHEIN's US listing plan came to nothing.
Under investor pressure, SHEIN could not abandon its listing plans and thus turned its attention to the UK in early 2024, attempting to seek a London listing. At that time, SHEIN engaged intensively with UK authorities and secretly submitted a draft prospectus to the UK Financial Conduct Authority (FCA) in June of the same year, reportedly targeting a valuation of about £50 billion (approximately US$63.7 billion). Unfortunately, this British venture encountered political and market resistance by year-end. With the UK Labour Party coming to power, SHEIN faced strong scrutiny from multiple parties regarding its labor rights and supply chain transparency. Additionally, the EU's plan to eliminate the tax exemption threshold for imported packages under 150 euros and other tariff policies created significant uncertainty for SHEIN's business outlook. SHEIN ultimately did not list in the UK, with the primary reason still lying in the Chinese government's stance; reports indicated that the CSRC's approval process for SHEIN's UK listing备案 was also slow.
After consecutive setbacks in the US and UK, SHEIN shifted its focus to the Hong Kong market in July 2025, submitting a confidential listing application to the Hong Kong Stock Exchange. Given the closer financial ties between Hong Kong and mainland China, SHEIN finally obtained the CSRC's overseas listing备案 approval notice and, half a month later on July 26, passed the Hong Kong Stock Exchange Listing Committee's hearing and updated its post-hearing documents. This six-year-long IPO journey, which spanned three major financial centers, has finally entered its final sprint stage.
*Valuation collapse one month before share offering*
However, SHEIN has missed its optimal listing timing. Currently, Western countries are closing loopholes for tax-free small parcel imports, competition among Chinese e-commerce players expanding overseas has intensified, and capital is increasingly favoring the AI industry chain over internet platforms, causing SHEIN's valuation to significantly decline. The prospectus shows that SHEIN is offering approximately 280 million shares to the public at a price range of HK$47.60 to HK$49.50 per share, raising about US$1.77 billion, corresponding to a total market valuation of nearly US$27 billion—over 70% lower than its historical peak valuation of nearly US$100 billion in April 2022.
Even during the Hong Kong IPO period, SHEIN's target valuation has undergone multiple clear downward revisions. In July, when SHEIN was pushing for its Hong Kong listing, market rumors suggested a target valuation of US$40-50 billion. Then, during roadshows in early August, Reuters reported that investors were discussing a further reduced range of about US$30-40 billion. Around August 17, Reuters disclosed again that the target valuation had further dropped to a range of US$26-28 billion.
Accompanying this valuation reduction is a significant decline in SHEIN's profitability. Prospectus data shows that SHEIN's net revenue growth has notably slowed: net revenue reached US$32.103 billion in 2023, a year-on-year increase of 41.1%; in 2024, the growth rate declined to about 20.7%; in 2025, it further plummeted to about 8%; and in the first quarter of 2026, net revenue was US$9.052 billion, up only 1.1% year-on-year. At the same time, the company's profit performance faces immense pressure: net profit increased from US$2.789 billion in 2023 to US$3.365 billion in 2024, but sharply declined to US$2.064 billion in 2025, with net profit margin shrinking from 8.7% to 4.9%, and even recording a net loss of US$99 million in the first quarter of 2026, turning the net profit margin directly to negative 1.1%.
*Cheung Chi Wai: No attraction seen in SHEIN's listing*
Cheung Chi Wai, Joint Director at Sun Hung Kai Securities, told {Economic Information Daily} that SHEIN's shift to Hong Kong is clearly because it 'has no other choice but to come to Hong Kong,' with its core business (especially e-commerce) in decline, mediocre fundamentals, and a repeatedly downgraded valuation, making it unattractive.
In its prospectus, SHEIN stated that the significant drop in net profit in 2025 was mainly due to changes in the company's valuation, leading to a shrinkage in the fair value of convertible redeemable preferred shares; while the loss in the first quarter of 2026 was due to a US$328 million fair value loss on preferred shares, which offset the company's first-quarter profits.
Mak Ka Ka, Head of Financial Products Trading and Head of Research at Grand Financial Securities (Asia), told {Economic Information Daily} that fast fashion is currently not a focus for capital, coupled with a relatively small issuance size and low market attention. Additionally, potential impacts from US parcel-related freight or tariff policies could further hit its business.
*Mak Ka Ka: Not worth subscribing for gains*
This policy originated from Trump's cancellation of the de minimis tariff exemption on August 29 last year, eliminating tariff exemptions for imports from China, Mexico, and Canada valued below US$800, with transitional arrangements requiring senders to pay fixed tariffs ranging from US$80 to US$200 per item based on the country of origin. Earlier, the US Court of International Trade (CIT) in New York ruled that the president has the authority to suspend duty-free import privileges for goods with a retail value not exceeding US$800. Trump also called this ruling a 'major victory' on his Truth Social platform.
SHEIN stated that due to the double blow of the US cancellation of China's small-quantity goods tax exemption policy and additional tariffs, its US business performance from the second half of 2025 to the first quarter of 2026 has already been negatively impacted. The prospectus shows that net revenue in the US market was US$2 billion in the first quarter of this year, down 14.3% year-on-year from US$2.4 billion in the same period last year.
Cheung Chi Wai believes that although the initial subscription cost is not expensive, speculative small bets might have a chance of gains, but investors should not expect strong market demand or a sharp stock price surge, as it is not that kind of hot new stock. Mak Ka Ka also stated that SHEIN's current Hong Kong listing has limited upside potential, and her overall view is neutral. She advises investors to remain on the sidelines, as actively subscribing to the new shares for potential gains may not be worthwhile given the low value proposition.