Shein IPO 2026: Why Its Valuation Fell From $100 Billion to $27 Billion

Shein’s long-awaited stock market debut is moving closer, but with a valuation far below the level once attached to the fast-fashion giant. The company’s Hong Kong IPO could value Shein at about $27 billion at the top of its proposed range, compared with $98.2 billion during its 2022 private fundraising.

That roughly 70% reset tells a bigger story than a simple drop in investor enthusiasm. Shein is entering public markets after slower growth, pressure on its US business, higher cross-border trade costs and years of regulatory scrutiny — all factors investors now have to price into the company.

The $98 billion valuation belongs to a different Shein

Shein reached a $98.2 billion private valuation in 2022, when rapid online-shopping expansion and expectations for its global fast-fashion model supported much more aggressive growth assumptions.

The reset did not happen overnight. Its valuation had already fallen to around $64 billion by 2023 and remained near that level in April 2024. A roughly $27 billion IPO valuation would therefore represent another major step down.

This does not mean Shein physically lost $71 billion. Private valuations reflect what investors were willing to pay during particular funding rounds. An IPO forces a new price to be tested against today’s public-market expectations.

Slowing growth is changing the investment case

The most important shift is growth. Shein’s revenue increased about 8% in 2025 after rising 20.7% a year earlier. First-quarter 2026 revenue growth slowed further to around 1.1%, with first-half growth expected to remain broadly around that level.

For a company previously valued like a high-growth disruptor, that slowdown matters. Investors generally become less willing to pay premium sales multiples when future expansion becomes harder to predict.

The US has become Shein’s biggest warning sign

Changes affecting low-value imports from China have made Shein’s direct-to-consumer shipping model more expensive in the United States.

US revenue fell 14.3% year over year during the first quarter of 2026. Shein also reported a $99 million quarterly net loss versus a $395 million profit a year earlier, although the latest result included a $328 million fair-value charge related to convertible redeemable preferred shares after an accounting change.

A closer look at Shein’s $99 million loss and US tariff pressure shows why investors are paying particular attention to its American business.

The problem is structural: passing higher costs to shoppers could weaken Shein’s low-price advantage, while absorbing those costs can squeeze profitability.

Tariffs are only one part of the risk

Trade uncertainty extends beyond Shein. Changing tariff policies can quickly alter costs for retailers, manufacturers and consumers, as illustrated by the wider list of products affected by higher US tariff rates.

Europe presents another challenge. Shein has warned that import charges, pricing conditions and other market pressures could affect performance, while regulatory scrutiny continues across major markets.

The company had set aside roughly $80 million by the end of March for ongoing legal and regulatory matters, adding another cost investors must consider.

Why Shein is listing in Hong Kong

Hong Kong was not the original destination. Shein previously explored a US IPO and later pursued London, but neither effort produced a public listing amid political and regulatory complications.

China’s securities regulator subsequently approved the Hong Kong listing, removing an important obstacle. Investors can follow official listing disclosures through the Hong Kong Exchanges and Clearing disclosure platform.

Big investors are still willing to back Shein

The valuation cut has not eliminated institutional demand. Cornerstone investors have committed roughly $383 million to the offering, including existing shareholders Boyu Capital, Tiger Global and General Atlantic, alongside Tencent, Greenwoods, Taikang Life and UBS Asset Management.

Shein intends to use about 80% of the IPO proceeds for technology improvements and international brand expansion. At the top of the range, the company could raise approximately $1.77 billion.

The number to watch isn’t $100 billion anymore

The final IPO price is expected on August 31, with trading scheduled to begin September 1. The immediate test will be whether investors believe $27 billion already reflects the risks — or whether slowing growth and higher operating costs justify an even larger discount.

For Shein, the more important long-term test is whether its huge international customer base and technology-driven supply chain can produce stronger growth without sacrificing the low prices that helped build the business in the first place.