Today, on September 1, 2026, the Chinese e-commerce giant Shein debuted on the Hong Kong stock market with its stock price initially dropped by 10% below the issue price. Shein had caught the attention of European and American regulatory authorities due to its rapid expansion.
Shein made its official entrance into the Hong Kong Stock Exchange on September 1, opening at 48.56 Hong Kong dollars, equal to the issue price. However, the stock price declined afterwards, plunging by 10% during early trading in Hong Kong. The stock hit a low of 43.72 Hong Kong dollars before regaining some ground to close at 44.50 Hong Kong dollars, corresponding to a market value of about 24 billion US dollars. As the market closed, the stock price remained below the issue price.
Shein had announced a final offer price of 48.56 Hong Kong dollars per share, raising 13.6 billion Hong Kong dollars through this listing, leading the company’s stock market value to reach 26.3 billion US dollars.
Charu Chanana, Chief Investment Strategist at Saxo Bank, commented to BBC that Shein’s weak performance on its first day of trading indicates that the market doubts the company’s ability to achieve a revival in growth.
According to documents submitted by Shein prior to listing, as of the end of the fiscal year in March 2026, the company had over 273 million active customers, with a total of over 1 billion orders placed.
Chanana mentioned that the company is now facing higher trade costs, stricter regulatory scrutiny, and fiercer competition while investors are increasingly favoring tech companies. For consumers, this suggests that Shein’s low-price strategy is becoming “increasingly difficult to sustain.”
Ashley Dudarenok, founder of ChoZan, a market research company in China, stated that “Shein can no longer find markets willing to accept it.”
She added that the company moved its headquarters to Singapore before applying for an IPO, attempting to make itself “appear less like a Chinese company,” but failed to gain support overseas or assurance from Beijing.
Established in 2008, Shein experienced explosive growth during the COVID-19 pandemic. People in quarantine discovered this online store, and the phenomenon of “Shein Hauls” (customer unboxing videos of large clothing orders) further propelled the brand’s popularity worldwide.
Statistics from the Netherlands Bureau reveal that due to the hub effect of Rotterdam port and Amsterdam Schiphol Airport, around 1,200 packages from regions outside the EU arrive in the Netherlands every minute, with a considerable portion coming from fast-fashion e-commerce like Shein.
However, this growth momentum is facing challenges. In July, Shein disclosed a quarterly loss of 99 million US dollars. Competitors like Temu in the cross-border e-commerce industry are also encountering similar issues.
Public information shows that as of July 1, 2026, the EU Council officially abolished the tax exemption loophole for small packages under 150 euros, implementing a fixed customs duty of 3 euros per category on all non-EU inbound small packages. According to the latest data released by the French Customs and the French Ministry of Economy at the end of August 2026, since the new policy was implemented, the total volume of Asian small packages entering the EU has decreased by 30% to 40%.
The United States has also revoked a key exemption clause for small packages (the “de minimis rule”). Over the years, this rule has aided Shein and its competitors like Temu in tax-free import of packages valued at less than 800 US dollars into the US.
Furthermore, Shein revealed in its IPO documents that its US operations are under investigation by the Federal Trade Commission (FTC) for potential violations of consumer protection laws. Shein stated its cooperation with the investigation and warned that it could lead to significant financial penalties, posing a major adverse impact on the company’s financial condition and business performance.