Shein Wins China Approval for Hong Kong IPO After Failed New York, London Attempts

Chinese fast-fashion retailer Shein has received approval from the China Securities Regulatory Commission to list in Hong Kong, after its previous attempts to go public in New York and London failed. Shein had long downplayed its Chinese roots but has recently emphasized its ties to the Chinese supply chain. The listing application documents show that the online fast-fashion retailer faces rising costs, slowing growth, and increased regulatory pressure in major markets. Shein's 2025 revenue was $41.8 billion, up 8% year-on-year, a marked slowdown from 20.7% growth the previous year. In the first quarter of 2026, due to the US cancellation of duty-free treatment for small parcels and a large one-time accounting charge, Shein posted a loss of $99 million.

Shein's valuation has shrunk sharply from nearly $100 billion during its 2022 fundraising round. The company is under pressure to accept a valuation of $30 billion, far below the $64 billion in 2024. Shein, known for selling $5 dresses and $10 jeans, operates in about 160 countries. Its listing documents show the company is transitioning from a high-growth, tech-driven fast-fashion platform to a mature global apparel retailer with slower growth and compressed margins.

Market data indicates that Shein's growth slowdown is not solely due to tariffs. In the US apparel, accessories, and footwear market, Shein's market share peaked at about 5% in the first quarter of 2025, then turned to negative year-on-year growth, continuing to decline in 2026. In the UK, Shein's market share reached a record 7.5%, but the year-on-year increase fell from about 1.8 percentage points in the first half of 2025 to nearly zero. Customer demographics are also shifting: in the US, the share of consumers aged 18 to 34 is declining fastest, while the share of those aged 55 and older is still rising. Consumers under 25, who drove Shein's US rise two years ago, have turned to slightly negative growth.

Competitors have adopted strategies that Shein finds difficult to replicate. Temu has shifted to local sellers, importing inventory in bulk and clearing customs at standard tariffs. Shein struggles to localize inventory because its ultra-fast fashion model requires launching thousands of new designs daily and shipping on demand from China. Additionally, the European Union this month imposed a fee of 3 euros per item on low-value imports, and Shein and Temu have suspended most of their advertising spending in Europe. The European market contributed about one-third of Shein's revenue last year.

Shein founder Xu Yangtian, in his first public appearance in February 2026, pledged to "continue to take root in Guangdong" and plans to invest more than RMB 10 billion (about $1.4 billion) in the province to build a "smart supply chain system." Shein moved its headquarters from Nanjing to Singapore in 2022, after previously attempting to list on Western exchanges. Beijing blocked its London prospectus due to concerns over disclosure of its China supply chain risks.