Shein Receives Hong Kong IPO Approval with Lowered Valuation

Shein received approval from the Hong Kong Stock Exchange listing committee on July 17, 2026, to proceed with an initial public offering. The fast-fashion retailer plans to publish its first public listing document during the week of July 27, with a potential launch between late August and September.

The company is targeting a valuation between $40 billion and $50 billion, a sharp decline from the $100 billion valuation it held during a 2022 funding round. This adjustment follows sluggish growth, intense competition from rivals like Temu, and unsuccessful attempts to list in New York and London due to political opposition and regulatory scrutiny.

Recent headwinds include a new €3 fee on low-value e-commerce imports imposed by the European Union to combat unfair competition from China. Because Europe accounts for one-third of the company's revenue, Shein has responded by reducing European advertising spend and expanding warehouse space in Wroclaw, Poland. Despite these challenges, the company reported global revenues exceeding $40 billion and nearly $2 billion in net profit last year.

Investors remain cautious about the target price. Central Asset Management's chief investment officer suggested a $30 billion valuation would be more attractive given the current political pressure in Western markets. CEO Chris Xu now faces the task of convincing investors that these growth dips are temporary setbacks.