Fashion Retailer's Long- Awaited Stock Debut Fizzles

Shein finally made it to the trading floor in Hong Kong, and investors mostly shrugged. Shares of the online fast-fashion giant slipped as much as 10% in early trading on Tuesday, putting its value near $24 billion—dramatically below the roughly $100 billion peak it once boasted in 2022, per Reuters. The muted reception to its debut follows years of regulatory and political hurdles that derailed plans to list in New York and London, as scrutiny of the company mounted.

Analysts say the stock still isn't cheap: A representative from the Saxo investment bank noted that Shein trades at about 15 times forward earnings, more than double that of Temu owner PDD, despite softer growth prospects and heavy trade and regulatory risks. Tariff and duty changes in the US and Europe have hit the company's low-cost model—a model the New York Times suggests is a "relic"—with net income falling 39% last year, and Shein ending up with a first-quarter loss even as it pushes into new markets and brands. "Shein has probably missed its golden listing window due to the shift of momentum toward AI and tariffs, which can affect valuations and profitability," a senior economist for France's Natixis bank tells the AP.