Shein’s Value Down $5 Billion, Among HK’s Worst Post-IPO Weeks

(Bloomberg) -- Shein Global Holdings Ltd. has lost about $5 billion in market value since its initial public offering as it finished one of the worst opening weeks after a major Hong Kong listing, underscoring investor concerns over the fast-fashion retailer's growth outlook.

Even after a 3.2% surge Monday, their first gain since the IPO, the shares closed 19% down from the HK$48.56 offering price. That's the second-worst performance in the first five sessions among companies that raised at least $1 billion in a Hong Kong listing, just behind a 19.9% plunge by Baidu Inc., according to data compiled by Bloomberg. The company's market value has dropped to about $21 billion from roughly $26 billion.

Completing a years-long listing process has done little to dispel concerns over Shein's weakening profitability, regulatory headwinds and intensifying competition. Once valued at about $100 billion during the pandemic-era e-commerce boom, Shein is now facing a much tougher environment, leaving investors skeptical about its ability to rekindle growth. The losses also highlight the limited appetite for traditional e-commerce businesses as capital is increasingly flowing toward companies involved with artificial intelligence and robotics.

"Shein's decline reflects the growing market concerns of tariffs, fulfillment costs and execution risks surrounding its marketplace transition," said Bloomberg Intelligence analyst Catherine Lim.

Lim said the selloff was largely driven by company-specific concerns, though it also reflected broader skepticism toward cross-border e-commerce models amid tariffs, de minimis changes and tighter regulation. The shift toward AI and technology stocks has exacerbated the weakness, but questions over Shein's growth and margins remain the key concern, she said.

Shein came to the public market as its once-rapid expansion was losing momentum. The company posted a loss of $99 million in the first quarter, compared with a profit of $395 million a year earlier. Revenue increased 8% in 2025, slowing from 21% growth in 2024 and falling short of the company's target.

The weak performance adds to a rocky start for the retailer's long-awaited listing after years of attempts to go public overseas. Once viewed as a pandemic-era growth champion, Shein is now grappling with slowing expansion, higher trade barriers and mounting competition in global e-commerce.