Shein slides into the red ahead of Hong Kong IPO

Third attempt after New York and London

The debut is being accompanied by the banks Goldman Sachs, Morgan Stanley, and JPMorgan. Approval from the Chinese securities regulator for a listing in Hong Kong came in early July after a one-year wait. Earlier attempts by Shein to go public on the stock exchanges in New York and London had previously failed.

Shein identifies the end of the US "de minimis" rule as a significant risk. Since May 2025, the United States has abolished duty-free exemptions for shipments valued at less than 800 US dollars. Low-cost shipping retailers like Shein had benefited particularly from this exception. According to the company, the abolition also weighed on sales in the United States.

Customs rules as a "mega problem"

This is a "mega problem" for Shein, according to an economic expert. The company is also facing changed customs regulations in the European Union: a new EU regulation subjects parcels with a goods value of less than 150 euros to customs duties. Shein explicitly considers this a risk and cites government regulation overall as a business risk.

Logistics costs have also risen in recent months, according to Shein. The reasons cited include the Iran war and the associated higher crude oil prices. Shein ships its goods directly from factories in China, typically by air freight, to destinations around the world. The company, however, points to long-term agreements that secure air freight capacity.

Risks beyond the company's control

Shein believes that its business activities are associated with risks, "many of which are beyond our control." There is no assurance that Shein will be able to maintain its profitability in the future. Management also stated that the conflict is not expected to have any material impact on the business.

In addition to pressure from the United States, Shein is also facing criticism in Europe. Politicians, trade representatives, and consumer advocates object to product quality, lack of controls, and unfair competitive conditions. Asian shopping platforms such as Shein, Temu, and AliExpress are nevertheless gaining significance in Germany at the same time.

In the prospectus, Shein provided no details on the size of the IPO, the price range, or the timetable. The exact timing of the Hong Kong listing therefore remains open. The listing prospectus was filed with the Hong Kong Stock Exchange on Sunday.

For Shein, this is the third attempt to go public. The group had previously failed in New York and London. With the filing in Hong Kong, preparations are now well advanced.