Fast-fashion giant Shein’s shares fall after Hong Kong trading debut that spotlights its China roots

Fast-fashion giant Shein’s shares fall after Hong Kong trading debut that spotlights its China roots 0 seconds of 59 secondsVolume 0% Press shift question mark to access a list of keyboard shortcuts Keyboard ShortcutsEnabledDisabled Shortcuts Open/Close/ or ? Play/PauseSPACE Increase Volume↑ Decrease Volume↓ Seek Forward→ Seek Backward← Captions On/Offc Fullscreen/Exit Fullscreenf Mute/Unmutem Decrease Caption Size- Increase Caption Size+ or = Seek %0-9 Next Up Nostalgic spinning top craze whirls through Hong Kong 00:47 00:00 00:59 00:59 More Videos 00:47 Nostalgic spinning top craze whirls through Hong Kong 01:10 Six months on, the Iran war has changed the Middle East, but not in the way its architects had hoped 00:51 Butter me up: Paris gets its first boutique devoted to France’s favorite fat 01:39 Metropolitan Museum of Art cancels its planned exhibit honoring British designer John Galliano 01:09 'Camp, glam, fun': GQ Fashion Editor on Dolly Parton's style 00:40 Ontario premier answers Trump’s ‘Lake America’ with giant ‘Lake Ontario’ sign 01:20 Alabama Shakes return after a decade apart 00:50 Trump calls NASA after successful telescope launch Close 1 of 6 | Shares in fast-fashion online retail giant Shein lost around 10% after it began trading on Hong Kong’s stock market Tuesday, after a long delay in the company’s plans to list its shares publicly. Shein raised about $1.7 billion, priced at HK$48.56 ($6.19) a share, in its initial public offering in Hong Kong in one of the city’s biggest new share sales this year. 2 of 6 | A logo of fast-fashion retailer Shein is seen on the t-shirt at the listing ceremony in Hong Kong, Tuesday, Sept. 1, 2026. (AP Photo/Chan Long Hei) 3 of 6 | A logo of fast-fashion online retailer Shein is displayed at the listing ceremony in Hong Kong, Tuesday, Sept. 1, 2026. (AP Photo/Chan Long Hei) 4 of 6 | Xu Yangtian, also known as Sky Xu, chief executive officer of fast-fashion online retail giant Shein, attends its listing ceremony in Hong Kong, Tuesday, Sept. 1, 2026. (AP Photo/Chan Long Hei) 5 of 6 | Leigh Gui, Chief Financial Officer of fast-fashion online retailer Shein, speaks at the listing ceremony in Hong Kong, Tuesday, Sept. 1, 2026. (AP Photo/Chan Long Hei) 6 of 6 | Representatives from fast-fashion online retailer Shein strike the gong at its listing ceremony in Hong Kong, Tuesday, Sept. 1, 2026. (AP Photo/Chan Long Hei) By CHAN HO-HIM Updated 5:49 AM MESZ, September 1, 2026 Add AP News on Google Add AP News as your preferred source to see more of our stories on Google. Share Share Facebook Copy Link copied Print Email X LinkedIn Bluesky Flipboard Pinterest Reddit HONG KONG (AP) — Shares in fast-fashion online retail giant Shein lost around 10% after it began trading on Hong Kong’s stock market Tuesday, after a long delay in the company’s plans to list its shares publicly. Shein raised about $1.7 billion, priced at HK$48.56 ($6.19) a share, in its initial public offering in Hong Kong in one of the city’s biggest new share sales this year. “Shein’s Hong Kong listing marks a new starting point,” said Leigh Gui, Shein’s chief financial officer, in a short speech at its listing ceremony. But in early trading, the shares fell to around HK$44. Shein’s appeal to customers has been built on ultra-fast, affordable fashion, delivered from China to the West in just days. The end of “de minimis” tariff exemptions in the U.S. and the European Union has raised duties for low value parcels from China, including Shein’s products, as well higher logistics costs caused in part by the war in Iran, have squeezed the company’s low-price business model and profitability. Tariff costs have helped force Shein to raise prices, “cutting into its main advantage,” said Jacob Cooke, CEO of WPIC Marketing + Technologies. Shein recorded a $99 million loss in the first three months of this year, compared with a $395 million profit in the same period a year earlier. AI and robotics drive an IPO boom in China as Shein lists in Hong Kong 2 MIN READ China moves to wrap up saga of troubled property giant Evergrande after founder gets life sentence 19 MIN READ Shares in Chinese humanoid robot maker Unitree soar in its Shanghai trading debut 19 MIN READ Earlier, Shein, pronounced “she-in,” explored listing its shares in New York and London. It moved its headquarters from China to Singapore around 2021. But increasingly strict scrutiny by Beijing as well as from regulators in the U.S. and Europe led it to embrace its Chinese roots and switch to a listing in Hong Kong. Launched in 2012 in China, much of Shein’s operations were in the southern province of Guangdong before it shifted its corporate headquarters out of the country. “Guangdong is Shein’s roots, and the starting point of our journey,” its founder Sky Xu said in a speech in February. Pivoting its focus back to China also highlighted the advantages Shein derives from the supply chain system that “only exists” in Guangdong, said William Ma at GROW Investment Group, referring to its small-batch, fast response manufacturing model. Shein has hit other roadblocks in expanding in Europe. In February, the EU launched a probe against Shein in February with a focus on “illegal” products, including alleged child sexual abuse material. In May, Shein acquired San Francisco-based eco-friendly clothing retailer Everlane, a move that some analysts said was not the best fit. The company’s market value was roughly $27 billion as it listed in Hong Kong, a fraction of its peak valuation a few years ago. “Shein has probably missed its golden listing window due to the shift of momentum toward AI and tariffs, which can affect valuations and profitability,” said Gary Ng, a senior economist for Asia Pacific at French bank Natixis. Still, Shein’s listing is welcome news for Hong Kong, as the Chinese territory makes increasing efforts to hold onto its role as a global financial hub following a downturn in 2023. Hong Kong’s stock exchange has experienced a strong year for IPOS so far, raising more than $40 billion. And there is a backlog of companies seeking to list there, said Lorraine Tan at investment research firm Morningstar. CHAN HO-HIM Chan writes about business and economy in China for The Associated Press, reporting on key sectors of the world’s second-largest economy from trade and technology to autos. He is based in Hong Kong. mailto