Fast-fashion giant Shein aims for $27bn valuation in Hong Kong market debut

China-based retailer swung to $99m loss in first quarter and faces scrutiny over its environmental footprint

Shein, which built a fast-fashion empire on what seemed like impossibly low prices , has been forced to lower its own valuation in a cut-price stock market float, after falling into the red earlier this year.

The online retailer will list on the Hong Kong stock exchange on 1 September at a valuation of close to $27bn (£19.8bn), significantly down from a near-$100bn private market peak four years ago.

It is one of the longest-awaited initial public offerings (IPO) of recent years, after plans to list in New York were blocked by regulators over forced labour concerns. Shein then considered a £50bn float in London, but faced similar questions about its supply chain from campaigners, MPs and investors.

The company moved its headquarters to Singapore between 2021 and 2022, a move analysts have said was intended to avoid increasing global scrutiny of Chinese firms.

In early 2025 it refused to reassure British MPs that its products do not include cotton produced in the Xinjiang region of China, which has been linked to forced Uyghur labour.

Founded by the entrepreneur Chris Xu , the company runs most of its operations from China but sells all its goods outside the country. It reached a valuation of $100bn in an April 2022 fundraising round, making it the third most valuable startup in the world.

But more recently it has faced questions over slowing growth and rising costs. It swung to a loss of $99m in the first three months of this year, compared with a net income of $395m the year before, after the US removed an import duty exemption on small packages, hitting its sales in the country.

The company said the Iran war had caused delays to deliveries in some of its leading markets, while there was also less demand for its products because of the economic fallout from the conflict.

Shein said on Monday it would offer nearly 280m shares for between HK$47.60 and HK$49.50 each. That would raise roughly £1.3bn for the company at the top end of the range, and give it a market valuation of just under £20bn. The final offer price will be set on the day before it starts trading on 1 September.

The company’s European customer base rose to 156 million average monthly users by the end of last year, making it one of the continent’s biggest e-commerce platforms alongside Amazon.

Shein partly benefits from sending goods directly to shoppers, including to the UK and US, from China so they attract fewer taxes. The tactic has prompted calls for a change in tax rules.

In November, the group opened its first-ever physical outlet, a dedicated space in the BHV department store in Paris. Hundreds of customers lined up on its opening day, and dozens more people gathered to protest, requiring a heavy police presence.

Susannah Streeter, the chief investment strategist at Wealth Club, said: “Shein may still be one of the biggest names on the fast-fashion catwalk, but the IPO is going to be a harder sell, with plenty of investors questioning whether its low-cost formula still has the star power to deliver the growth they’re looking for.’’