Shein raised about $US1.7 billion ($A2.4 billion), priced at HK$48.56 ($A8.64) a share, in its initial public offering in Hong Kong, in one of the city's biggest new share sales for 2026. 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 on Tuesday.
But in early trading, the shares fell to around HK$44.
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 business model and profitability.
Tariff costs have helped force Shein to raise prices, "cutting into its main advantage", said Jacob Cooke, CEO of WPIC Marketing + Technologies.
Shein recorded a $US99 million ($A138 million) loss in the first three months of 2026, compared with a $US395 million ($A551 million) profit in the same period in 2025.
Earlier, Shein, pronounced "she-in," explored listing its shares in New York and London.
It moved its headquarters from China to Singapore around 2021.
But increasingly strict scrutiny by Beijing as well as from regulators in the US and Europe led it to embrace its Chinese roots and switch to a listing in Hong Kong.
Launched in 2012 in China, much of Shein's operations were in the southern province of Guangdong before it shifted its corporate headquarters out of the country.
"Guangdong is Shein's roots, and the starting point of our journey," its founder Sky Xu said in a speech in February.
Pivoting its focus back to China also highlighted the advantages Shein derives from the supply chain system that "only exists" in Guangdong, said William Ma at GROW Investment Group, referring to its small-batch, fast response manufacturing model.
Shein has hit other roadblocks in expanding in Europe. In February, the EU launched a probe against Shein in February with a focus on "illegal" products, including alleged child sexual abuse material.
In May, Shein acquired San Francisco-based eco-friendly clothing retailer Everlane, a move that some analysts said was not the best fit.
The company's market value was roughly $US27 billion ($A38 billion) as it listed in Hong Kong, a fraction of its peak valuation a few years ago.
"Shein has probably missed its golden listing window due to the shift of momentum toward AI and tariffs, which can affect valuations and profitability," said Gary Ng, a senior economist for Asia Pacific at French bank Natixis.
Still, Shein's listing is welcome news for Hong Kong, as the Chinese territory makes increasing efforts to hold onto its role as a global financial hub following a downturn in 2023.
Hong Kong's stock exchange has experienced a strong year for IPOS so far, raising more than $US40 billion ($A56 billion). And there is a backlog of companies seeking to list there, said Lorraine Tan at investment research firm Morningstar.
