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After struggling to go public in both the US and UK, Shein saw its shares fall in a disappointing Hong Kong stock market debut. It suggests the company is unlikely to keep its fast-fashion, low-cost business model intact amid intense scrutiny and competition.
Fast-fashion company Shein saw its shares fall by roughly 10% during early trading on the Hong Kong stock market this week.
Co-founder of Shein Global Holdings, Sky Xu (also known as Chris Xu), took the company public after trying unsuccessfully in London and New York. Despite the initial drop, the stock eventually recovered most of its losses and finished the day almost flat.
This will be a disappointing start to Shein’s entrance into public trading, and follows a significant decline in the company’s overall value. In 2022, Shein was worth nearly $100 billion USD. Since then, it has dropped by more than 70%, sitting at approximately $26.5 billion USD as of September 2026.
The lack of real enthusiasm over its public trading could cause further spooks, as investors consider whether Shein has the resources or momentum to continue growing. The brand may be running out of steam, particularly as competitors with better reputations squeeze the market.
Shein was blocked in New York and London over concerns regarding forced labour and its supply chains. It has routinely been accused of having a poor environmental footprint and encouraging the purchasing of cheap, disposable clothing that often ends up in landfill.
It has become a staple brand for Gen Z, however. Low prices and easy accessibility meant that many younger shoppers who didn’t have a ton of disposable income five years ago were still able to keep up with trending looks on social media.
Shein understood the power of TikTok early on, capitalising on influencer culture, microtrends, ‘hauls,’ sponsored content, and so on, adopting practices that have evolved into standard industry practices over the past few years. It successfully utilised short-form video discoverability before many of its competitors, providing a substantial industry lead that gave it leverage with Gen Z consumers, at least for a while.
Consumer behaviours have changed since then, and Shein has steadily lost its edge over the past few years.
After several years of criticism for being aggressively unsustainable and of poor quality, Shein has developed a reputation for being a bit…well, tacky, and has become less desirable for Gen Zers who want to look and feel good.
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