Shein shares fall 10% after Hong Kong trading debut spotlights China roots

Shares in fast-fashion online retail giant Shein lost around 10 per cent after it began trading on Hong Kong's stock market Tuesday, after a long delay in the company's plans to list its shares publicly.

Shein raised about USD 1.7 billion, priced at 48.56 Hong Kong dollars (USD 6.19) a share, in its initial public offering in Hong Kong in one of the city's biggest new share sales this year.

"Shein's Hong Kong listing marks a new starting point," said Leigh Gui, Shein's chief financial officer, in a short speech at its listing ceremony.

But in early trading, the shares fell to around 44 Hong Kong dollars.

Shein's appeal to customers has been built on ultra-fast, affordable fashion, delivered from China to the West in just days.

The end of "de minimis" tariff exemptions in the US and the European Union has raised duties for low-value parcels from China, including Shein's products, as well higher logistics costs caused in part by the war in Iran, have squeezed the company's low-price