Shein, the Singapore-headquartered fast-fashion retailer founded in China, closed flat in its Hong Kong debut on September 1.

The stock ended at HK$48.50 (US$6.2), from its HK$48.56 (US$6.2) initial public offering price, as investors weighed slower growth and regulatory risks.

The listing valued Shein at about US$26.3 billion, down from nearly US$100 billion in 2022.

Shein’s net income fell 39% last year, and the company swung to a first-quarter loss after the US ended the de minimis duty exemption for ecommerce shipments under US$800.

The European Union also imposed a 3 euros (US$3.5) fee on low-value ecommerce parcels.

Shein also disclosed an investigation by the US Federal Trade Commission into consumer protection issues that it said could have a material adverse effect on its US operations.

In Europe, the European Commission is investigating Shein under the Digital Services Act over suspected illegal products, recommendation system transparency, and design features that may affect users.

🔗 Source: Reuters

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