Shein has received approval from the China Securities Regulatory Commission for a listing in Hong Kong, a significant shift after its previous attempts to go public in New York and London were unsuccessful. This approval comes as Shein publicly embraces its Chinese roots, which it had previously downplayed.
However, investors are questioning whether the company can sustain its valuation of over $40 billion, especially as its growth has slowed considerably. In 2025, Shein's revenue grew by only 8% to $41.8 billion, a sharp decline from the 20.7% growth seen the previous year.
The company also reported a $99 million loss in the first quarter of 2026, attributed to the removal of an import-duty exemption and a significant one-time accounting charge. Analysts are now valuing Shein more like a traditional clothing retailer rather than a high-growth tech company, with estimates suggesting its post-listing market cap could settle between $20 billion and $30 billion.
This is a stark contrast to the nearly $100 billion valuation it had during a fundraising round in 2022. The competitive landscape is also shifting, with rivals like Temu adapting more effectively to market changes. Additionally, Shein faces reputational risks due to allegations of poor working conditions and environmental concerns, compounded by an ongoing investigation by the U.S.
Federal Trade Commission. As Shein prepares for its IPO, the market's appetite for fast fashion appears to be waning, raising further doubts about its future growth prospects