BUSINESS

Shein Moves Closer to Hong Kong IPO as Growth Slows

Published: Jul. 27, 2026 1:23 p.m. GMT+8

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Shein has moved a step closer to a Hong Kong initial public offering that could value the fast-fashion giant at about $40 billion, even as its revenue growth and profitability slow.

The company’s once-explosive growth has slowed sharply, according to company filings released by the Hong Kong stock exchange on Sunday. Revenue rose from $32.1 billion in 2023 to $41.8 billion in 2025, but annual growth slowed from 41.1% to 8% and fell further to 1.1% in the first quarter of 2026.

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Shein advances Hong Kong IPO at ~$40B amid slowing growth; revenue growth slowed from 41.1% to 1.1% in Q1 2026, swinging to a $99M loss.
Removal of U.S. and European de minimis tax exemptions harmed its biggest markets, contributing 24.1% and 35.4% of 2025 revenue.
French regulators fined Shein €62.5M for misleading discounts and environmental claims.

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1. Shein has moved closer to a Hong Kong initial public offering (IPO) that could value the fast-fashion company at about $40 billion, even as its revenue growth and profitability slow [para. 1][para. 8].

2. Shein's revenue rose from $32.1 billion in 2023 to $41.8 billion in 2025, but annual growth slowed sharply from 41.1% to 8% and further to 1.1% in the first quarter of 2026 [para. 2].

3. Profit reached $3.4 billion in 2024, dropped to $2.1 billion in 2025, and swung to a $99 million loss in the first quarter of 2026, partly due to valuation-related losses on preferred shares [para. 3].

4. Founded in China in 2009 and now headquartered in Singapore, Shein relies on its large-scale automated test and re-order (LATR) model for rapid production adjustments and offers over 2 million apparel styles, launching an average of 4,700 new styles daily in early 2026 [para. 5][para. 6].

5. The Hong Kong listing follows previously stalled attempts to go public in the U.S. in 2023 and London in 2025; the China Securities Regulatory Commission accepted Shein's overseas listing plan on July 10, allowing up to 341.6 million ordinary shares to be issued [para. 7].

6. Shein's IPO valuation target of about $40 billion marks a significant drop from its valuation of $60.5 billion in January 2022, a peak of $98.2 billion the following month, and $64 billion by April 2023 [para. 8].

7. Prior to the IPO, founder Xu Yangtian Sky remains the ultimate controller, holding a 33% stake through Apex Sight Holdings Ltd. [para. 9].

8. Shein's financial pressure coincides with the removal of de minimis tax exemptions in key markets; the U.S. cancellation in May 2025 hurt sales and revenue growth, and Europe's removal in July 2026 could also have a material negative impact, with the U.S. and Europe contributing 24.1% and 35.4% of 2025 revenue respectively [para. 10][para. 11].

9. Since 2023, Shein has faced growing scrutiny in both markets over data practices, intellectual-property disputes, and the sale of allegedly counterfeit goods [para. 13].

10. French regulators fined a Shein sales entity 40 million euros ($45.6 million) in July 2025 over misleading discounts and unsubstantiated environmental claims, and France's consumer-protection authority imposed a further 22.5-million-euro fine in June 2025 over problems involving returns, product disclosures, and order confirmations [para. 14].

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Who’s Who

Shein: Shein is nearing a Hong Kong IPO with a ~$40 billion valuation, down from its $98.2 billion peak. Revenue growth slowed to 1.1%, swinging to a $99 million loss in Q1 2026. It faces headwinds from the US ending de minimis exemptions and large fines in France. Founder Xu Yangtian Sky holds a 33% stake.

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