Ultra-fast-fashion brand Shein has been valued at $26.2bn (£19.3bn) after its first day of public trading, following a long quest to list on the stock market.

The company was once estimated to be worth nearly $100bn, but has faced heated competition, trade tensions and questions over the ethics of its supply chain.

Shein’s share price fell in the early hours of trading but recovered ground before closing down just 0.12%.

The company’s attempts to list in the UK and US were scuppered after supply chain concerns and criticism of its environmental impact.

On Monday, Shein priced its shares at HK$48.56 each, raising ‌13.6 billion Hong Kong dollars ($1.7bn; £1.3bn) from the listing.

That gave the company a stock market valuation of $26.3bn.

Shein’s shares fell by as much as 10% in early trading before the losses eased. They closed at $48.50, leaving it valued at $26.15bn.

Shein became hugely popular, especially among younger people, due to its ability to source the very latest fashions at ultra-low prices through a vast network of factories in China.

At a ceremony to celebrate the listing, chief financial officer Leigh Gui said the company’s model of selling large numbers of small orders with rapid payment options now reaches about 160 markets worldwide.

“Let global consumers enjoy the sound of fashion,” he said after a gong was struck to mark the start of trading.

Shein has more than 273 million active customers who placed a total of more than a billion orders in the year to the end of March 2026, the firm said in a filing ahead of the listing.

But it now faces higher costs, regulatory scrutiny and more competition, said Charu Chanana, chief investment strategist at Saxo.

For customers, the slump in Shein’s shares is a sign that the firm’s cheap prices are “becoming harder to sustain”, which may lead to higher prices, she added.

The listing marks the largest new share sale in Hong Kong so far this year, which is being seen as a test of investor appetite for the fast-fashion industry.

It is a rare “standalone” e-commerce firm that can be assessed on its own merits, fashion industry analyst Louise Deglise-Favre from research firm GlobalData.

Shares in rivals Asos and Boohoo have been battered in recent years as they face regulatory scrutiny and fierce competition.

“Investors have learned to be sceptical,” while concerns over sustainability and ethical issues add to the complexity of Shein’s share sale, Deglise-Favre said.

Founded in China and headquartered in Singapore since 2021, Shein has spent several years touting its credentials as a global company, but ultimately was forced to return to its Asian roots to go public.

The company once looked set for one of the largest stock market debuts ever by a Chinese firm, with Wall Street in its sights.

The firm’s long road to the stock market highlights the geopolitical pressures and regulatory scrutiny faced by Chinese companies with global ambitions.

Its business had surged during the Covid-19 pandemic as people, stuck at home, turned to online retailers. At the same time, social media influencers shared their hauls for millions of followers to see.

Shein faced resistance from US lawmakers, who objected to the planned listing over concerns of forced labour in its factories. In response to such allegations, the company has said it takes a “zero-tolerance policy for forced labour”.

An initial public offering (IPO) in the US – by far Shein’s largest market – would have offered it a chance to further increase its global profile and tap into Western financing.

It has also been accused of copying other designers’ ideas. Shein has said “it takes all claims of infringement seriously” and that it respects the rights of all designers.

Shein also explored the possibility of making its stock market debut in London but faced similar opposition.

The BBC has contacted Shein for further comment.

In 2025, Shein shifted its attention to Hong Kong, with Chinese authorities approving the move in July this year.

“Shein ran out of venues that could take it,” said Ashley Dudarenok, founder of Chinese market research firm ChoZan.

The company attempted to “look less Chinese” by shifting its headquarters to Singapore ahead of its IPO bid, but it never won political backing abroad nor assurances from Beijing, she added.

Trade tensions and regulatory concerns mean Shein is navigating a very different landscape to when it first started exploring a potential IPO.

In July, it reported a $99m quarterly loss as its sales slowed after the US struck down an import duty exemption on small packages.

The exemption, known as the de minimis rule, had helped Shein and rival Temu grow rapidly as it allowed packages worth less than $800 to enter the US without incurring import duties.

Similarly, the European Union has imposed a €3 (£2.57; $3.50) tax on low-value imports.

The Iran war has also hit demand, raised costs and caused delays to deliveries in some markets, Shein has said.

Its rivals are feeling the pressure too. In August, Temu-owner PDD reported lower-than-expected quarterly revenue.

The company also needs to find ways to stand out from its rivals, that are now also using predictive technology to make their websites more appealing to shoppers, said Jason Hsu from Rayliant Global Advisors.

“Shein is not longer a unique player,” Hsu said.

Shein is also being investigated by US and European regulators over its business practices.

Get our flagship newsletter with all the headlines you need to start the day. Sign up here.