Shein Shares Plunge in HK Debut After Rocky Road to IPO

Summary

Shein shares fell as much as 10% in their Hong Kong debut before paring losses. Bloomberg's Winnie Hsu reports from the Hong Kong Stock Exchange, noting investor concerns around growth, profitability, valuation, tariffs, regulation, business model sustainability, and labor practices. The company also reported a first-quarter loss compared with a gain a year earlier.

• Shein shares opened down about 2%, later fell as much as 10%, and were down about 7% at the time of reporting.
• Global employees attended the listing ceremony and hit the gong.
• Europe and the US are Shein's biggest revenue sources.
• Investor concerns include growth, profitability, valuation, US tariffs, and European regulatory changes.
• Questions also surround business model sustainability and labor practices.
• Shein reported about $99 million in first-quarter losses versus roughly $400 million in gains a year earlier.