Shein’s Hong Kong IPO Stumbles as Shares Fall Over 10% in Gray-Market Trading

TLDR

• Shein shares dropped more than 10% in gray-market trading ahead of its Hong Kong Stock Exchange debut
• The company raised $1.7 billion at HK$48.56 per share, valuing it at around $26.5 billion
• This is far below Shein’s nearly $100 billion private market peak valuation in 2022
• Tariffs, competition from Temu, and slowing growth are weighing on investor confidence
• Shein posted a $99 million net loss in Q1 2026, compared to a $395 million profit a year earlier

Shein’s long-awaited Hong Kong IPO has gotten off to a rocky start. Shares of the fast-fashion retailer fell more than 10% in gray-market trading on Monday, one day before the company is set to officially list on the Hong Kong Stock Exchange.

Shein is set to go public in Hong Kong on Tuesday at just over a quarter of the $100 billion it was worth in 2022. Founder Sky Xu’s personal wealth will fall to about $8 billion, according to the Bloomberg Billionaire's Index. https://t.co/ibrfqNdWHn

- Bloomberg (@business) August 30, 2026

The company raised $1.7 billion in its IPO, pricing shares at HK$48.56 each. That gives Shein a market value of roughly $26.5 billion. Official pricing was expected to be confirmed later on Monday.

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