Shein Stock Falls in Gray-Market Trading Ahead of Hong Kong IPO
Shein's stock dropped more than 10% during gray-market trading ahead of its scheduled listing on the Hong Kong Stock Exchange, signaling cautious investor sentiment. Major brokerages such as Futu Securities and Phillip Securities quoted prices significantly below the rumored HK$48.56 per share offering price. The IPO is expected to raise $1.7 billion at a valuation of around $26.5 billion — a sharp decline from its 2022 private-market peak of nearly $100 billion. The muted investor enthusiasm reflects broader concerns about Shein's business model, particularly amid shifting trade policies in the U.S. and Europe that have hurt revenue growth and profitability. In Q1 2026 alone, the company reported a net loss of $99 million after previously posting strong profits. Revenue from its largest market, the U.S., fell by nearly 15% year-over-year. This Hong Kong listing is Shein's first successful public offering following failed attempts in New York and London.
Topics: gray-market trading Hong Kong IPO Shein valuation decline