❯ Reuters: Shein Cuts Hong Kong IPO Valuation Target to About $25 Billion

CUTAccording to a Reuters exclusive, Shein has cut its Hong Kong IPO valuation target to about $25 billion, below the $30 billion–$40 billion range from early August. The adjustment came after meetings with investors. The company expects to launch the offering within this week, selling roughly 8% of its shares and raising up to $2 billion.

GAPThe reference point is the nearly $100 billion valuation from its 2022 funding round — a three-quarter decline in four years. On the fundamentals, Shein posted a net loss of $99 million in the first quarter of 2026, versus a profit of $395 million in the same period a year earlier. The HKEX filing also shows a $328 million loss related to the fair value of convertible shares. Tighter regulatory scrutiny in major markets such as the European Union aimed at e-commerce platforms selling low-priced Chinese goods is the main driver behind the downward revision in growth expectations.

PRICING REALITYCutting the valuation after the roadshow shows that buy-side growth assumptions for cross-border e-commerce no longer match the seller’s narrative. In the same week, Anthropic is preparing to list with a $65 billion revenue curve, while Shein is cutting its price with a loss-making quarterly report — Hong Kong’s pricing patience is currently reserved only for assets that can demonstrate growth. The same cohort of cornerstone investors is watching both deals; the $5 billion valuation gap cut is the price they set for a growth story that doesn’t hold together.

▪ SIGNALIn the same listing window, some are raising prices and others are cutting them — the dividing line is whether growth can be shown.