Shein dropped as much as 10% on its Hong Kong trading debut Tuesday before paring the fall to roughly 4% under the offer price, at HK$46.36 a share. The retailer had priced almost 280 million Class B shares at HK$48.56 for about HK$13.6B in gross proceeds, below the HK$49.50 top of its filed range and worth more than $26B, less than a third of what the company was valued at in 2022. Profitability has slipped since, with 2025 revenue up 8% to $41.85B while net income fell from $3.37B to $2.06B. First-quarter 2026 revenue rose 1.1% to $9.05B, but Shein swung to a $99M loss from a $395M profit, which it attributed to the US scrapping its duty exemption on low-value packages. The EU imposed a three euro duty on small parcels this month, and Shein is weighing price increases in both markets.
