Global markets: Shein will struggle to justify up to $50 billion Hong Kong IPO valuation

Fast fashion retailer Shein is struggling to justify a valuation of up to $50 billion for its Hong Kong IPO, with revenue growth slowing to 8% (around $41.8 billion in 2025) and net income falling 39% to $2.06 billion. The company swung to a $99 million loss in Q1 2026, and its thin 2.9% operating margin is drawing scrutiny from institutional investors. Analysts expect the IPO valuation to fall short of its previous private fundraising rounds ($64 billion in 2024 and $98.2 billion in 2022) due to higher trade costs, US de minimis exemption removal, and new EU fees on low-value imports, which could benefit competitors like Primark and H&M.