Fast-fashion retailer Shein made a tepid Hong Kong debut on Tuesday, having raised US$1.7 billion in a high-profile initial public offering. The flotation comes after the company's plans to list in New York and London were derailed by regulatory scrutiny, but it won approval from Chinese officials in July for the sale in the southern financial hub. But its share price tumbled on opening by as much as 10 percent, before bouncing back to close the day down just 0.1 per cent at HK$48.5. The long-awaited IPO put the company's valuation at around US$26.3 billion with its listing price of HK$48.56 – well short of the nearly US$100 billion during private fundraising rounds in 2022. Read moreFrance targets Shein and Temu with new fast fashion levy Shein, known for its ultra-low prices and rapidly produced clothes, said proceeds from the sale would be used to finance its technological capabilities and boost its international presence. The online retailer moved its headquarters to Singapore between 2021 and 2022, which analysts say was intended to avoid increasing global scrutiny of Chinese firms. Its European customer base rose to 156 million average monthly users by the end of 2025, making it one of the continent's biggest e-commerce platforms – alongside China's AliExpress and US titan Amazon, which have 193 million and around 180 million users respectively. 'Not a loss' The company has faced scrutiny over its environmental footprint and allegations of human rights violations and faces growing competition from low-cost e-commerce companies such as Temu and AliExpress. Executive chairman Donald Tang told AFP last year that the company has "zero tolerance" for forced labour. Morningstar analyst Lorraine Tan said in an August note that revenue growth "has converged to the pace seen by the fast fashion industry at below 10 percent in 2025". She added the fall in valuation "does reflect that drop-off in investor appetite for Shein's shares".