Shein Worth Only $26 Billion in Stock Market Debut, Down From $100 Billion in 2022

Shein finally got its Hong Kong listing done, but the number attached to it is a long way from the dream valuation the company once carried. The IPO raised about $1.7 billion and left the fast-fashion group worth roughly $26 billion. In 2022, a private round had put it near $100 billion. That is not a trim. That is a reset.

The shares were priced at HK$48.56, close to the middle of the marketed range, and trading on the Hong Kong Stock Exchange begins on Tuesday. A cluster of well-known cornerstone investors — Boyu Capital, Tiger Global, General Atlantic, Tencent, Greenwoods, Taikang Life and UBS Asset Management — bought about $383 million of stock. Even so, demand was hardly roaring. Margin-financed subscriptions covered the deal 4.66 times, according to China Daily, while Mech-Mind drew 3,842 times cover in the same window.

The bigger story is why the valuation shrank so much. Shein’s revenue reached about $41.8 billion in 2025, up 8%, but profit moved the wrong way. Net income fell from $3.37 billion to $2.06 billion, and the margin slid from 8.7% to 4.9%. By the first quarter of 2026, the company had dropped into a $99 million loss on roughly flat revenue of about $9 billion. That is not the kind of trajectory public-market buyers usually pay up for.

Trade policy has done a lot of the damage. The United States ended the de minimis exemption for low-value shipments in May 2025, exposing Shein parcels to import duties ranging from 10% to 87.5%. The European Union removed its 150-euro threshold too, and Brussels is considering a two-euro fee on each imported parcel. A model built on duty-free single shipments from Chinese warehouses looks a lot less magical once the tax bill shows up.

And the competition is getting meaner. Temu is pushing the same low-cost playbook in the United States and Europe, and in some markets it has pulled level with Amazon. Shein says most of the money from the float will go into technology and brand work, including AI forecasting and more logistics hubs. On Tuesday, investors will get their first chance to decide whether that sounds like a comeback or a very expensive repair job.