When Shein is listed on the Hong Kong Stock Exchange, the valuation lands at 250 billion Swedish krona (25 billion US dollars). This is a decrease of 75 percent compared to 2022, when the company was valued at 953 billion Swedish krona.
The lowered price tag directly affects Sky Xu, as he owns 30 percent of the e-commerce company. His wealth therefore goes from over 219 billion Swedish krona to 76 billion Swedish krona.
New customs regulations in the USA and EU
Several factors lie behind the lowered valuation.
The company is facing tougher competition and a slowed growth. In addition, changed customs regulations in both the USA and EU have made it more difficult for the company's model of sending small packages tax-free.
Before the choice fell on Hong Kong, the company tried to list in the USA and London. However, the plans were interrupted after reviews of working conditions and demands from Chinese authorities, despite the headquarters being moved to Singapore in 2021.
Investors choose new technology
At the same time, investor interest has shifted. Consumer brands do not attract the same capital as a few years ago, and investments are instead directed towards other sectors of the market.
The market has changed rapidly in the past year.
Financiers and funds are now primarily seeking out companies that develop next-generation technology, which makes it more difficult for e-commerce companies to attract new capital on the stock exchange.