Shein stumbled out of the gate in Hong Kong, logging one of the heftiest first-week drop-offs among large listings. Among deals that pulled in $1 billion or more, Bloomberg data show Shein's five-day drop was the second most severe, trailing only Baidu Inc.'s 19.9% decline in its first week.
Day one told the story. The stock sank up to 10% early on and spent much of the session below the offer level before late buying trimmed the damage to a 0.1% dip at HK$48.50. Monday delivered a 3.2% rise - the first up day since listing - but shares still ended 19% beneath HK$48.56.
Wrapping up a years-in-the-making listing did not quiet doubts about the business. Shein recorded a $99 million loss in the first quarter, versus a $395 million profit a year prior. Revenue grew 8% in 2025, slowing from 21% in 2024 and missing the company's own goal.
The market cap now hovers near $21 billion, down from roughly $26 billion. That is a far cry from the pandemic era, when Shein carried an approximately $100 billion valuation. Investors are recalibrating as profitability softens, regulatory pressure builds and rivals pile in.
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"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. She further noted that, beyond stock-specific factors, unease about cross-border e-commerce is increasing because of tariffs, adjustments to de minimis thresholds, and stricter rules. The broader swing toward AI and tech names has added pressure, but questions about Shein's growth and margins are still front and center.
A splashy listing is no guarantee of smooth sailing, especially in a market tilting toward AI and robotics and away from old-guard e-commerce. Shein's rocky start underscores how quickly sentiment can flip when profits slow and regulatory risks pile up. If you are tracking new listings, it is a reminder to look past the headlines and focus on whether the business can defend margins and find the next leg of growth.
