Shein once had a valuation of more than three times the $30 billion figure that shareholders have pushed for. Now, after two failed listing attempts and rising competition, the company is still pushing ahead with a Hong Kong IPO that could raise up to $3 billion as soon as August.
The CSRC approval cleared a major hurdle for the company, which had struggled to list in the US and London.
In 2021, Shein relocated its corporate headquarters to Singapore. Since then, it tried to list in the United States and then in London. Both attempts failed, partly because Chinese regulators withheld approval for the London listing. The company turned to Hong Kong as its best option.
Get the market news that matters in a five-minute read with Market Briefs, our free daily newsletter
The approval from China's securities regulator concludes an extended period of regulatory deadlock that forced Shein to abandon previous listing plans abroad. The company's Singapore base was intended to ease scrutiny, but ongoing geopolitical tensions limited its options until Hong Kong emerged as the only viable venue.
The steep drop in Shein's valuation reflects the company's challenges. The sharp decline from its peak valuation of more than three times the $30 billion figure underscores the shifting dynamics in the fast-fashion market.
Competition from PDD Holdings Inc., the owner of Temu, has hurt Shein's business. Tariffs and wider regulatory scrutiny have also weighed on the company. These pressures help explain why shareholders want a lower entry price for the IPO.
Temu's aggressive marketing and low prices have directly challenged Shein's dominance in the fast-fashion segment. Meanwhile, the US tariff increase on Chinese goods, along with proposals to close the de minimis loophole that allows duty-free small packages, could further squeeze Shein's margins. These factors, combined with a broader slowdown in e-commerce growth, have prompted investors to reassess Shein's valuation.
Shein's business model relies on a vast network of Chinese suppliers that lets it churn out small batches and quickly adapt to fashion trends. However, that also ties it to geopolitical risks and trade-policy shifts. Moving its headquarters to Singapore was meant to create distance from its Chinese origins, but because its core operations and supply chain remain heavily centered on mainland China, the company still needs Chinese regulatory clearance for any overseas listing.
The Hong Kong stock exchange is scheduled to hold a hearing with Shein on Thursday. The final IPO size and timing may change, but the company is still targeting a listing as soon as August 2026. This hearing will be a key procedural step toward finalizing the offering, though the exact date remains subject to market conditions and investor demand.
Join Market Briefs, our free daily newsletter, for a quick daily rundown of the markets
