Fast-fashion retailer Shein’s share price fell 10 per cent following its Hong Kong stock market debut Tuesday, bringing the company’s valuation to below $25 billion.

The company, valued at around $100 billion only four years ago, debuted on the Hong Kong Stock Exchange (HKEX) with shares costing 48.56 Hong Kong dollars ($6.19), giving it a total value of just over $26 billion. Within minutes, their value fell almost 10 per cent.

The trading price rebounded by the end of the day, and the company closed at 48.50 Hong Kong dollars. Despite this, the failure to achieve a first-day gain, described by Reuters as “typical”, highlights the company’s recent difficulties convincing investors that it will be able to retain its competitive advantage in an evolving retail landscape.

Just two months ago, Shein was reportedly aiming for a listing price of $40 to $50
billion, and the figure continued to fall until settling between $25 and $28 billion by the middle of August.

The fall came alongside a series of hurdles for the company, including crackdowns in major markets on many of its Chinese-made products, increased global tariff rates and a series of fines from regulators.

“As a new company listed in Hong Kong, we will continue to innovate, optimise, and cooperate with our supply chain partners for mutual benefit and win-win results,” Shein chief financial officer Leigh Gui said at the gong ceremony launching trading.

The initial public offering marks the end of a four-year long saga during which the company tried and failed to list on both the New York and London stock exchanges.

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