Shein made his first big hit on the Hong Kong Stock Exchange, losing 4%
While the Chinese textile giant has begun its stock market journey with huge holes and has even suffered losses of up to 10% at some point, France is launching today, Tuesday, a fiscal offensive against this business model with charges of up to EUR 12 on each product.
Shein, one of the world's leading fast fashion benchmarks, began its career on the Hong Kong Stock Exchange on Tuesday with losses of 4% in the first few hours. The Asian market premiere comes after years of geopolitical tensions and strategic changes that have led to a 73% decline in valuation of the company compared to 2022, when it peaked.
Today, however, is a historic day for the company, as for the first time in its history any investor in the world has been able to buy and sell Shein's shares in an official and authorized market.
Nervousness in the stock market and collapse of valuation
The day began with shares in Hong Kong currency at $48.56 (€5.35), the price set for the sale of the 280 million securities authorized by the company. In terms of official listing, however, it has been a day of great instability. As soon as the session began, the securities have fallen by 10% in the first few minutes, as investors were nervous.
After this debut, Shein has raised about $1.735 billion, and his current valuation is $26.305 billion, which, while good, is far from the $98.2 billion the company recorded in 2022.
Pressure from financial sponsors, on the one hand, and avoidance of investment swaps, on the other, has caused Shein to jump into the stock market, and the company is facing declining margins and sales in the US and Europe, which have suspended customs exemptions for small packages.
France's Tax
From this Tuesday, France will begin applying a punitive system to Chinese groups such as Shein and Temu, which will have to tax from 0.5 to 12 euros per product in favour of a more sustainable textile industry.
In any case, Shein remains one of the world's leading names in fast fashion, ranking third with a 1.9% market share behind giants Nike and Inditex.
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