Should You Buy Shein Stock After Its IPO?

After several years of twists and turns and multiple aborted attempts, Shein finally made its stock market debut on ^1st September 2026 at the Hong Kong Stock Exchange. This IPO, highly anticipated for the Chinese fast-fashion giant, did not really start under the best auspices.

Shein raised about $1.7 billion, with a valuation well below the peaks reached just a few years earlier. And the first trades did not reassure investors much, as the Shein stock quickly headed downward.

So, can this Shein IPO still represent an investment opportunity? Café de la Bourse revisits the figures of the deal, the reasons for the mixed reception of Shein’s stock in the market, but also the strengths and risks of Shein, before giving you our view on the Shein stock. Find out whether you should invest in Shein stock in 2026.

Shein: who is the Chinese fast-fashion giant?

Today it is hard to miss Shein. Founded in China in 2012 and now based in Singapore, the group has established itself in roughly a decade as one of the global heavyweights in online fashion. Its success rests notably on very low prices, an immense catalog, and above all a capacity to refresh its collections at an impressive pace.

Behind this mechanism lies a model largely steered by technology. Shein continuously analyzes demand and begins by producing new designs in small quantities, then rapidly increases volumes when sales meet expectations. An organization that allows it to limit inventory while offering thousands of new items every day.

In 2025, Shein counted around 273 million active customers in nearly 160 markets, for revenue of $41.8 billion.

Who is Shein in a few key figures?

Shein IPO: all you need to know about the listing

For its IPO, Shein offered about 280 million shares, at a price of HKD 48.56 per share, allowing it to raise about $1.7 billion. A move that valued the group at around $26.5 billion, far from the nearly $100 billion reached in 2022.

After the IPO, publicly traded shares represented about 6.6% of Shein’s capital. The four co-founders remain largely in control with nearly 60% of the equity. Sky Xu, founder and CEO, personally holds about 30.3%. Among other major shareholders are notably Sequoia Capital/HSG, with about 9.2% of the capital after the IPO, and IDG Capital, with about 7.2%.

Why did Shein choose the Hong Kong Stock Exchange?

Hong Kong was not Shein’s first choice. The group first tried to list in New York, then turned to London. Both routes faced significant regulatory hurdles, both in the West and in China, and Shein ultimately failed to obtain the required approvals to complete those listings.

Shein finally turned to Hong Kong, a financial hub that allows it to carry out an IPO prepared for several years, while remaining close to China, where most of its supplier network still resides.

What will the $1.7 billion raised by Shein be used for?

Shein plans to use 40% of the funds to strengthen its technological capabilities and 40% to develop its brand and international presence. The remaining 20% will be allocated to initiatives related to corporate responsibility (10%) and the group’s general needs (10%).

Shein IPO: how did the listing go?

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Shein’s first steps on the Hong Kong Stock Exchange did not really spark investor enthusiasm. Listed at HKD 48.56 per share, Shein’s stock fell in the first hours of trading, with a drop of about 10% during the session. A rather cold reception for one of the year’s most anticipated IPOs in Hong Kong.

A relatively moderate demand for Shein shares

The Shein IPO was indeed oversubscribed, but to fairly modest levels for Hong Kong. The tranche for retail investors was oversubscribed 5.63x, versus only 2.59x for the international tranche. By comparison, some recently highly sought-after IPOs in Hong Kong have been oversubscribed by several hundred times.

Another thing to keep in mind: only 6.6% of Shein’s capital was offered in the IPO, and anchor investors pulled back about one-fifth of these shares. In the end, only around 5% of the capital was immediately available for trading. Despite this limited float, demand was not strong enough to support the price in early trading.

Why does Shein’s stock fall in its first steps on the market?

The drop in Shein’s stock from the outset mainly reflects market questions about the group’s ability to regain profitable growth. The problem is particularly related to the United States: the disappearance of the “de minimis” duty exemption directly weakened a model partly built on shipping small, low-cost parcels. As a result, U.S. sales fell 14.3% in Q1 2026.

But it is primarily the deterioration of margins that worries. After revenue growth limited to 8% in 2025, vs. 20.7% in 2024, Shein still anticipates a slowdown in the first half of 2026. At the same time, tariffs, logistics costs, and the expenses required to stay competitive against Temu weigh on profitability.

In other words, despite a valuation already cut by almost a factor of four since 2022, the market seems to deem Shein’s discount partly justified by a deterioration in its fundamentals.

What are the advantages and risks of investing in Shein stock? Café de la Bourse’s view

Shein undeniably has serious arguments to present to investors. But its entry into the stock market also comes at a time when its model is under more pressure. Between growth potential, a more reasonable valuation, and risks weighing on margins, here are the main points to keep in mind before investing in Shein stock.

What are the advantages of investing in Shein stock?

• A global brand: Shein counts around 273 million active customers across nearly 160 markets.
• A highly agile model: small-batch production allows rapid adaptation to demand and limits unsold inventory.
• A technological edge: data, algorithms, and AI are at the heart of product selection, production and sales.
• An extremely broad offering: millions of references and thousands of new items are offered every day.
• A significantly lowered valuation: the valuation stood around $26.5 billion at IPO, versus nearly $100 billion in 2022.

What are the risks of investing in Shein stock?

• A clear growth slowdown: revenue rose only 8% in 2025, vs. 20.7% in 2024.
• Margins under pressure: tariffs, logistics, and marketing expenses could continue to weigh on profitability.
• Significant regulatory risk: changes in tariff rules can directly weaken Shein’s business model.
• Fierce competition: Temu, Zara, H&M and others compete in a highly competitive market.
• ESG and reputational risks: environment, working conditions, and supply chain remain sensitive issues for the group.

Should you buy Shein stock after its IPO? Our final view

In our view, Shein stock is not yet an obvious buying opportunity, even with a valuation around 26.5 billion dollars, far from the nearly 100 billion reached in 2022. Because in the meantime, the environment has changed: Shein is growing more slowly and must demonstrate that the company can preserve its margins in a tougher environment.

That is probably where the main risk lies. Between tariffs, the end of the “de minimis” exemption in the United States, and equally aggressive competition, Shein will need to find the right balance between low prices and profitability. And for now, the market seems to want proof.

Nevertheless, the Shein stock deserves to be watched closely. Shein remains a global brand, has a remarkably efficient supply chain, and excels in technology and data. For a long-term investor willing to tolerate high volatility, a small position in Shein stock can be argued as a speculative bet on the group’s ability to return to more profitable growth.

We would nevertheless stay cautious in the short term on Shein stock, awaiting some financial disclosures that could better judge the trajectory of Shein’s margins and profits in 2026.

How to buy Shein stock in the market from France?

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Shein stock is now listed on the Hong Kong Stock Exchange under the code 0625.HK. As we write, Shein trades around 47 HKD, roughly €5.17 or $6.00 USD per Shein share. So be careful not to confuse the Hong Kong dollar (HKD) with the US dollar (USD).

To invest directly in Shein stock, you need a securities account with a stockbroker that provides access to the Hong Kong Stock Exchange.

Another possibility could emerge over time: . Given Shein’s size and its weight in global e-commerce, Shein could eventually be included in certain stock indices or thematic ETFs exposed to e-commerce, consumer, or fashion. This potential inclusion is not automatic and will depend on selection criteria, float, and liquidity required by each index.