Shein Stock Waited Years to IPO Only to Flop. Blame Trump.

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Shein stock slipped 0.1% in its Hong Kong trading debut on Tuesday. (Leung Man Hei/AFP via Getty Images)

Key Points

Shein shares closed 0.1% below their initial public offering price in their Hong Kong trading debut on Tuesday.
The debut gave Shein a market capitalization of about $26 billion, down from a $100 billion valuation in a 2022 private fundraising round.
Shein previously shelved plans for initial public offerings in New York and London following pushback from regulators.

Shein stock had a trading debut to forget on Tuesday, summing up the waning fortunes of a company that was at one point expected to upend the entire fast-fashion market.

Shares slumped as much as 10% in Hong Kong before mounting a comeback. They closed at 48.50 Hong Kong dollars, 0.1% below their initial public offering price. The Hang Seng Index finished 0.9% lower.

That gave Shein a market capitalization of about $26 billion, way below the $100 billion valuation it commanded following a 2022 private fundraising round.

There have been plenty of stellar IPOs in China this year—the most notable being memory-chip maker CXMT , which surged 466% on its trading debut in July to become the country’s most valuable company.

Shein never looked likely to join the club. The company has lost its luster in recent years, in part due to the Trump administration ending the de minimis exemption last summer.

That made goods valued below $800 subject to tariffs, which had a direct impact on Sheins cheap clothing.

Closing the loophole has also hammered shares of PDD Holdings , which owns online market place Temu. PDD’s American depositary receipts were down 31% over the past 12 months through Monday’s close.

The company also explored initial public offerings in New York and London, but shelved those plans following pushback from regulators.

Write to George Glover at george.glover@dowjones.com

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