Shein’s $100 Billion Valuation Falls to $26 Billion
Speakers
Lisa Du
— Asia Investment Reporter, Bloomberg
Summary
Bloomberg's Lisa Du discusses Shein's planned Hong Kong IPO at about $26.5 billion, down sharply from its $100 billion private peak. She details why the listing is happening now, the regulatory and reputational risks weighing on the company, and its new pitch to investors centered on acquiring or partnering with other brands. The CFIUS review of the Everlane deal is flagged as a key test, while investor reception remains lukewarm.
- Shein is heading toward a Hong Kong listing at around $26.5 billion, roughly a quarter of its 2022 valuation.
- The IPO follows Chinese regulatory signoff after failed New York and London listing efforts.
- Regulatory, geopolitical, and reputational risks include Xinjiang cotton scrutiny and US political backlash.
- Shein is pitching a new growth strategy to buy or partner with brands and put them on its own supply chain.
- The Everlane acquisition is seen as the biggest test of that strategy, with CFIUS review unresolved.
- Investors are hesitant because Shein's valuation is similar to established peers like Zara and H&M.
- Most cornerstone IPO investors are existing Shein backers, signaling caution from regular IPO investors.
Ideas
Avoid Shein IPO amid valuation risks.
Shein is heading toward a Hong Kong IPO at roughly $26.5 billion, down from about $100 billion in 2022, with muted investor excitement because it is highly exposed to geopolitical, regulatory and reputational risks—including Chinese listing signoff, Xinjiang cotton scrutiny and US political backlash—and investors question paying a similar valuation when established peers have longer track records; majority cornerstone investors being existing backers signals regular IPO investors are hesitant.
Prefer Zara and H&M over Shein.
Investors comparing Shein's IPO valuation with established apparel peers see little reason to buy Shein when Zara and H&M offer years of dependable track record at a similar multiple, making the established peers relatively more attractive.
Up Next
This Bloomberg Markets video, published August 30, 2026, features Lisa Du discussing SHEIN, HM-B.ST, Zara. 2 trade ideas extracted by AI with direction and confidence scoring.