Shein stumbles in its Hong Kong stock market debut, losing more than 20% of its value

The fast-fashion platform Shein had a rocky debut on the Hong Kong Stock Exchange, where its shares have fallen more than 20% since trading began this week, amid doubts about its growth and the impact of new trade restrictions.

The company, which was once privately valued at more than $100 billion, went public with a valuation of nearly $26.5 billion, a drop of about 70% from its previous highs, according to data compiled by Breitbart News.

The stock opened flat on Tuesday and then began to lose ground. By Thursday, the stock had fallen another 5.22% to 43.6 Hong Kong dollars, as investors expressed concern about the regulatory and business risks facing the company.

The end of a key advantage in the United States

One of the main factors behind the skepticism surrounding Shein is the tightening of rules for low-value shipments. The United States eliminated the duty-free treatment that for years allowed platforms like Shein to ship millions of small packages directly to U.S. consumers at greatly reduced prices.

Reuters reports that these tariff changes hit the company's revenue in the first quarter of 2026 and weakened one of the key competitive advantages of its business model.

Despite the rocky debut, the initial public offering allowed Shein to raise approximately $1.74 billion. The company is now seeking to drive its expansion through acquisitions and has already confirmed an agreement worth about $80 million to buy the U.S. brand Everlane.

The stock market performance marks a setback for a company that, over the years, has become one of the biggest global symbols of low-cost e-commerce and so-called fast fashion.