Bumpy Start for Shein on the Hong Kong Stock Exchange - SZ.de
Article excerpt
Ultra-fast fashion has brought the online retailer a lot of revenue and a lot of criticism. On the Hong Kong Stock Exchange, it must now be seen whether the icon of throwaway capitalism is also suitable as an investment. By Gunnar Herrmann The fast pace of trends is usually not something that causes problems for the online retailer Shein. In fact, it is the core of the business model to constantly supply customers with ever new products, which are then disposed of and replaced with the next fashion trend. This concept is called ultra-fast fashion. This Tuesday, the business model was now evaluated on the Hong Kong Stock Exchange. And it seems that Shein missed an important trend after several delays to its stock market debut. The company listed its shares at an issue price of 48.56 Hong Kong dollars, but after trading began, the price immediately fell by up to ten percent. The weak start had already become apparent beforehand. Many analysts considered the issue price expensive compared to competitors like Temu. Meanwhile, Shein's valuation had continuously fallen for years. In 2022, the company's value was still estimated at the equivalent of 100 billion US dollars. For its stock market debut, the company now aimed for a market capitalization of only 26 billion US dollars. For comparison: The Swedish clothing company H&M is currently valued at about 30 billion dollars on the...
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Shein has recently worked on its reputation and, among other things, opened a large shop in downtown Paris.
