Shein Debuts on the Hong Kong Stock Exchange, Aiming to Raise Over $1.7 Billion

The "fast fashion" platform Shein opened the subscription process for its stock debut in Hong Kong this Monday, where it expects to raise up to $1.768 billion in Hong Kong, although it places its valuation at around $26.834 billion, a significantly lower amount than in 2022.

According to a statement from the Hong Kong Stock Exchange, the textile platform plans to offer 280 million shares to raise up to HK$13.86 billion (approximately $1.7 billion). In this way, Shein would reach a valuation of $26.8 billion.

Shein, a company founded in China and currently based in Singapore, received approval from Beijing in July to proceed with its stock market debut in Hong Kong.

Additionally, the digital commerce giant will use the funds raised during its IPO to primarily finance its technological capabilities and strengthen its international presence.

The company will announce the final figures for the subscription phase on August 31 and will make its debut on the financial market the following day.

It is important to note that Shein's plans to list in New York and London have been hindered in recent years due to regulatory difficulties. Thus, the Hong Kong stock exchange has emerged as the suitable venue for the initial public offering.

Shein concentrates most of its production in China, leveraging the scale and speed of the local manufacturing industry to renew collections at low cost and react in record time to global trends.

Another characteristic of the company is that it targets a young audience through its social media and secures its sales with a highly developed e-commerce chain, which operates in over 150 countries.

Shein reached an estimated valuation of $98.2 billion after its penultimate funding round in 2022. A year later, it had fallen to $64 billion and, finally, to the current valuation of $26.8 billion, after years of ups and downs and frustrated plans.

Among its main investors are international private equity firms such as General Atlantic and Tiger Global, as well as local players like Boyu and Tencent. This support group also includes Bolivian businessman Marcelo Claure, who holds a significant stake and was appointed vice president of the company in 2023.

In 2025, Shein recorded revenues of $41.8 billion, delivered over a billion orders worldwide, and achieved a net profit of $2.1 billion. However, in early 2026, the platform reported net losses of $99 million in the first quarter, due to accounting factors, it stated.

Ahead of its stock market debut, the company admitted to future investors that it cannot guarantee maintaining the dizzying pace of expansion that characterized its early years.

Moreover, the platform faces criticism for its environmental impact and for encouraging hyper-consumption in an industry, the textile sector, responsible for nearly 10% of global greenhouse gas emissions.

The commercial landscape in the United States added pressure on the company's margins after the removal, in 2025, of the tariff exemption regime for low-value packages. The company acknowledged that this measure resulted in a significantly higher tax burden, compounded by the tariffs imposed on Chinese imports.

Shein is also under scrutiny from European authorities. In France, the company has been fined several times, and Parliament definitively approved at the end of June a bill aimed at curbing the growth of fast fashion platforms.

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