Shein's Hong Kong IPO Sees Valuation Plunge 70% to $26 Billion

Shein's market value on its first day of trading in Hong Kong plummeted by over 70% to approximately $26 billion, a significant drop from its $100 billion valuation in a 2022 funding round. This decline is attributed to the weakening of its ultra-low-cost growth model, impacted by U.S.-China tensions, tariff barriers, and increased competition. The company's sales growth slowed to 8% last year after the abolition of the U.S. de minimis policy, down from 21% in 2023–2024, and it recorded a net loss of $99 million in the first quarter of this year.