Shein, the Chinese fast-fashion retailer, is set to begin trading on the Hong Kong Stock Exchange on September 1, with an initial public offering (IPO) valuing the company at approximately $26.5 billion. The listing will see Shein offering nearly 280 million shares at a midpoint price of HK$48.56 per share, raising around HK$13.6 billion ($1.7 billion). This valuation is a significant reduction from the company’s private-market peak of nearly $100 billion in 2022 and represents a roughly 60 percent decrease from the price it sought during a previously planned listing in London.
Founded in 2008 in China by Chris Xu (also known as Xu Yangtian) along with co-founders Maggie Gu (Gu Xiaoqing), Molly Miao (Miao Jiaqing), and Tony Ren (Ren Xiaoqing), Shein has grown into a global fast-fashion powerhouse headquartered in Singapore. The company leverages data analytics and algorithms to rapidly identify fashion trends and produce thousands of affordable designs, putting pressure on established brands such as Zara, H&M, Boohoo, and Asos.
The current IPO follows several unsuccessful attempts by Shein to list in New York and London over the past four years. Despite its rapid growth, the company has recently faced slowing revenue growth and declining profit margins. In the first quarter of 2026, Shein’s revenue growth slowed to around 1.1 percent, while it reported a $99 million loss during the same period. Increased regulatory scrutiny and changes to international trade policies have also posed challenges. For example, the end of the $800 de minimis exemption for low-value imports in the United States has raised costs for companies like Shein that ship numerous small parcels directly to consumers. In the United Kingdom, goods valued up to £135 currently benefit from customs-duty relief, though VAT still applies, with plans to phase out this relief by 2029.
Shein’s expansion has also been accompanied by scrutiny over its supply chain transparency, labor standards, alleged intellectual property infringements, and its connections to China.
Last month, Donald Tang, Shein’s executive chairman who had played a key role as the company’s western representative, stepped down from his leadership role. He had been responsible for engaging with politicians and regulators globally and serving as a public face for the company. Xu is expected to assume the chairman’s duties and lead the final investor roadshow, while Tang will remain involved in a senior advisory capacity.
As part of the listing, the four founders will retain close to 60 percent ownership of the company and nearly 90 percent of voting rights, which will be locked for 24 months. Cornerstone investors including Boyu Capital, Tiger Global, and General Atlantic have committed about $383 million in shares. These early backers are also eligible for up to $3.5 billion in additional cash or shares to offset the decline in company valuation since its peak.
The IPO is supported by major investment banks Goldman Sachs, Morgan Stanley, and JP Morgan. Shein has indicated it plans to allocate approximately 80 percent of the IPO proceeds toward enhancing its technology and expanding its brand and global presence. The company was contacted for comment.