Shares in online fast-fashion retailer Shein dropped 4% in their first day of trading in Hong Kong on Tuesday after slumping as much as 10%, with investors worried about the impact of setbacks of its long-delayed listing potentially undermining its competitive advantages.
Known globally for selling $5 tops and $10 dresses, Shein has been humbled by tariff and duty changes in the U.S. and Europe that have contributed to a dramatic decline in valuation for the company.
Founded in China in 2012 and headquartered in Singapore since late 2021, Shein spent years touting its credentials as a global company before re-embracing its roots to list in Hong Kong.
That capped a four-year quest to go public after failing to list in New York and London. Intense scrutiny of its business practices also hampered its attempts, which were ultimately blocked by Chinese authorities.
Its shares traded at HK$46.62 ($5.95) by mid-session, down from its HK$48.56 ($6.19) IPO price tag, but recovering somewhat from an earlier slide of as much as 10%.
