Shein Shares Fall 17.5% After Hong Kong Debut as Growth Model Faces Pressure

According to CNBC, Shein shares fell for a fourth straight day and have dropped 17.5% since the Singapore-headquartered retailer's Hong Kong market debut on Tuesday. The company reported revenue of $41.8 billion in 2025, up from $38.7 billion a year earlier, and posted a first-quarter net loss of $99 million after a profit in the same period last year. Analysts said Shein will need to prove it can compete on more than price, localize more of its operations and find new growth outside the U.S. and Europe as duty-free import rules tighten. The U.S. ended de-minimis treatment for shipments from China and Hong Kong in May last year, while the European Union stopped its customs-duty exemption for low-value imports worth up to 150 euros in July and introduced a temporary 3-euro duty per item. Nearly 5.9 billion low-value items entered the EU in 2025, according to European Commission data.