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Shein postpones Hong Kong debut to September, SCMP reports. By Reuters Reuters Updated August 20, 2026 4:07 AM Gift Article Aug 20 (Reuters) - Shein has pushed back its market debut in Hong Kong until September following a slight delay in taking investor orders for the fast-fashion retailer's IPO at a reduced valuation, the South China Morning Post reported on Thursday. Shein plans to introduce multiple cornerstone investors, although most positions will be taken up by existing shareholders, the report said, citing sources familiar with the matter. Shein did not immediately respond to a Reuters request for comment. Reuters reported on Monday that Shein is aiming to launch its much-awaited Hong Kong IPO later this week at a valuation just a quarter of the nearly $100 billion number seen in a share sale four years ago. The firm's valuation was likely to be around $25 billion in the IPO, Reuters reported, a drop from the $30 billion to $40 billion range speculated at the beginning of this month, just after it began investor meetings on the issue. Founded in China in 2012, Shein is best known for selling $5 dresses and $10 jeans to shoppers in about 160 countries. The South China Morning Post report said that the company now intends to start book-building from August 24. It had originally aimed to complete the entire IPO process by the end of August. Investment banks involved in the deal are considering arranging their own funds to serve as cornerstone investors, the report added. (Reporting by Nikita Maria Jino in Bengaluru; Editing by Mrigank Dhaniwala) This story was originally published August 20, 2026 at 3:50 AM.

Giant with decimated value enters the stock exchange. The Chinese fast-fashion giant Shein has seen more lucrative times, so its initial public offering in Hong Kong is under particularly close scrutiny. The subscription period begins on Wednesday, and the shares are expected to be traded on the stock exchange for the first time on August 28. In 2022, Shein was valued at approximately 98 billion US dollars (84.5 billion euros) in a financing round - the fact that only a market capitalization of around 25 billion US dollars is now expected speaks volumes. Online since yesterday, 10:58 p.m. In 2023, the company still grew by 41 percent, and in 2024 by 20 percent. For 2026, analysts expect growth of only two percent. In the first quarter of this year, the fast-fashion retailer recorded a loss of 99 million US dollars. Although the quarterly loss was also due to a write-down of 328 million dollars resulting from an accounting revaluation of certain preferred shares, Shein has undeniably faced hurdles recently. New US and EU customs regulations, which are intended to curb cheap suppliers from China, are particularly affecting Shein. Since July 1, the European Union has imposed tariffs of three euros per product category on e-commerce shipments from abroad. The US had already abolished duty-free treatment for cheap goods shipments last year, forcing Shein to maintain costly warehousing in the US. Being cheap has its pitfalls. The problem for Shein is its own business model. Shein's clothing items are disproportionately inexpensive; statistical software detects in real time when a product attracts attention on the brand's app or on social networks. Companies along the supply chain are integrated into the data flow and ramp up production accordingly. As a result, the share of unsold goods, according to its own information, consistently remains in the low single-digit percentage range. At the same time, the profit margin is relatively sensitive to additional costs. If, for example, a dress costs only a few dollars and suddenly additional import costs arise, this can eat up a significant portion of the original profit margin. Shein is therefore trying to raise prices in the US to pass some of the additional costs on to customers. However, this carries the risk of alienating buyers who have been conditioned to expect rock-bottom prices. Doubts about further growth. Shein's board attempted to convince potential investors in presentations before the IPO that the new tariffs would only cause a temporary growth dip. Experts, however, doubt this portrayal. Shein could indeed try to develop new product areas beyond cheap fashion, but it is unlikely that the company will regain the extraordinary growth of its early days, said Neil Saunders, managing director of market research firm GlobalData Retail. "There is no predetermined solution for slowing growth," said Juozas Kaziukenas, an analyst for the e-commerce industry. "The market has become significantly more difficult for the company." Given the sales declines in the US since 2025 and the growth slowing in Europe due to tariff changes, Kaziukenas said that revenues in these two markets, which together account for more than 50 percent of Shein's global total revenue, would likely stagnate in the short term. "Shein's short-term future lies in the countries of the 'rest of the world,' not in Europe or the US," said Kaziukenas. Headwind from various sides. Growing competition is also putting pressure on Shein. Temu, for example, partly pursues a similar concept: extremely low prices, many products, Chinese supply chains, and direct sales to Western consumers. Added to this are higher transport costs and stricter regulations in various markets, especially in the EU. In February 2026, the Commission opened formal proceedings against Shein under the Digital Services Act (DSA). The focus is on the sale of illegal products, including childlike sex dolls, weapons, and medicines, lack of transparency in recommendation algorithms, and addictive app design: customers receive points when they open the app once a day or write reviews. These points can later be exchanged for vouchers. Shein is also criticized for miserable working conditions and the use of dangerous chemicals in its products. IPO as a barometer. Despite the headwind, Shein is far from collapsing; rather, it is at a turning point: the business model that made it one of the world's most valuable fashion companies no longer works as it once did under the new political and economic conditions. Now, investors must be convinced that it can continue to grow despite higher costs and stricter regulation and defy the naysayers. The IPO in Hong Kong will show the way.