QUOTES-Shein shares slide in long-awaited Hong Kong trading debut

Online fashion retailer Shein's shares tumbled in early Hong Kong trading ​on Tuesday as the company made its long-awaited debut, ​capping a years-long effort to go public. The stock ‌began ​trading at HK$48.56 each, in line with the final price set in the initial public offering that raised $1.7 billion and valued Shein at $26.5 billion. The shares then fell to ‌HK$43.8 each.

Here are comments from analysts on the debut: KENNY NG, STRATEGIST, CHINA EVERBRIGHT SECURITIES INTERNATIONAL, HONG KONG:

"Shares are under the IPO offering price. I believe this reflects how Shein has faced significant challenges in recent years, alongside a decline in its ‌financial performance last year. Due to fluid international trade policies in recent years and the impact of geopolitical tensions on ‌global consumer sentiment, some investors remain relatively cautious about its valuation." CHARU CHANANA, CHIEF INVESTMENT STRATEGIST, SAXO, SINGAPORE:

"I think the weak debut shows that even after the huge valuation reset, investors still don't see Shein as obviously cheap. At around 15x forward earnings, it came to market at more than twice ⁠PDD's ​multiple, so investors were being ⁠asked to pay a premium despite weaker growth visibility and significant regulatory and trade risks. "That is a difficult combination to justify. PDD offers exposure to a ⁠larger e-commerce platform with a stronger growth story, while Shein is facing higher tariffs, the loss of the U.S. de minimis advantage, ​intense competition from Temu and AliExpress, and continued regulatory scrutiny.

"The problem is that the economics of Shein's model ⁠have become tougher at the same time as growth has slowed. So the market is treating Shein less like a disruptive high-growth platform and increasingly like ⁠a ​retailer facing margin and execution pressures." CHRIS WESTON, HEAD OF RESEARCH, PEPPERSTONE GROUP LTD, MELBOURNE:

"The demand profile is interesting. Shein was 2.6 times oversubscribed by institutional investors and 5.6 times oversubscribed by retail investors. "Contrast that with CXMT and Unitree, and the exceptional ⁠demand to participate in those allocations, and there is a clear message about where investors currently want exposure across China ⁠and Hong Kong.

"The strongest appetite ⁠remains around AI, robotics and memory. These are the areas where investors see structural growth, where demand is concentrated and where China is making its biggest strategic push."