Shares of online fast-fashion retailer Shein fell 8% in their Hong Kong trading debut on Tuesday, as investors remained cautious about the company's growth outlook, valuation and the growing challenges facing its low-cost business model.
The weak debut comes despite strong demand for the initial public offering, with institutional investors reportedly subscribing 2.6 times the shares on offer and retail investors bidding 5.6 times the available allocation. The stock's performance nevertheless suggests that investors remain concerned about whether Shein can sustain its rapid expansion amid rising costs, tougher trade policies and intensifying competition.
