Shein Shares Drop Over 5% on Second Day of Hong Kong Trading
Shares of Shein fell more than 5% on the second day of trading in Hong Kong, following a weak debut after its initial public offering. The stock had dropped as much as 10% during its first session but rebounded to close near its issuance price due to stabilisation measures used for large listings. On Wednesday, Shein closed at HK$46, while the Hang Seng Index remained flat. The IPO raised $1.7 billion and valued the company at $26.5 billion—far below its 2022 peak of nearly $100 billion. Analysts attribute the poor performance to slowing revenue growth, margin pressures, higher import duties in key markets like the U.S. and EU, regulatory risks, and increased competition. Brandon Ho from Arta Finance noted that investors are reassessing Shein's previously strong growth narrative due to these challenges.
Topics: Hong Kong stock market IPO share price decline Shein