Shein stock fails to captivate as fast-fashion giant makes market debut

After failed attempts to list its shares in New York and London, Shein Global Holdings has officially made its stock market debut (0625.HK)—though it wasn’t exactly a success. On Tuesday, September 1, the Chinese-founded fast-fashion company made its IPO on the Hong Kong Stock Exchange (HKSE) with a price of HK $48.56 ($6.19 USD). The stock fell more than 9% before recovering to a similar price of HK $48.50. A downsized giant Despite the rebound, Shein is still far from its heyday. In 2022, the company had a reported $100 billion valuation. Shoppers had flocked to the fast-fashion online retailer during the pandemic, buying up clothing items often for single digit prices. Since then, Shein’s value has dropped by one-fourth to an IPO valuation of $26.5 billion. The company reported a $99 million loss in its first quarter. Competition, controversy, and tariffs Shein’s fall from grace came with reports of forced labor and human rights violations. Those exceptionally cheap clothing items were given a human face that some consumers couldn’t ignore—though many people still buy from the brand. Shein has been reticent to respond to such controversies. When it has, it has tended to make va…