Shein, the fast-fashion e-commerce giant, is set to go public in Hong Kong on September 1, 2026, with a valuation just over a quarter of the $100 billion it held in 2022 [1, 2, 3]. This upcoming IPO will value the company at roughly $25 billion, significantly lower than its peak.

Sky Xu, also known as Xu Yangtian, Shein's CEO and co-founder, saw his net worth peak at over $23 billion based on Shein’s earlier valuations. With his 30% stake in the company now priced at the IPO level, Xu’s wealth is expected to fall to about $8 billion, marking a decline of over $15 billion in four years [1, 2, 3].

The drop in Xu’s personal fortune reflects a harsher business environment. Shein grew rapidly during the COVID-19 pandemic by targeting young consumers with cheap, trendy clothes, but its revenue growth has slowed recently [1, 2, 3]. The company’s strategy of avoiding import tariffs through small shipments suffered a blow when the U.S. ended a key tariff exemption and the European Union introduced fixed customs duties on small parcels in 2025, increasing costs and complexity for Shein [1, 2, 3].

Shein’s first-quarter 2026 financial results highlighted these challenges, showing a swing from a $3.95 million profit to a $9.9 million loss and declining revenue [2]. Investor enthusiasm for Chinese consumer brands like Shein has cooled as Hong Kong’s IPO market sees stronger interest in AI companies generating new wealth [1, 2, 3].

Sam Wyatt, an international equities portfolio manager at U Ethical Investors, said Shein “definitely missed the window” for a successful IPO and noted that “e-commerce is now a less attractive story to investors than AI” [1, 3].

US fashion expert Lu Sheng commented in Chinese that “market winds are changing unfavorably for Shein, especially in recent years,” and added that AI gives Shein’s competitors a “more level playing field” by enabling them to better and faster meet shifting consumer tastes [2].

Shein was founded in 2012 by Xu and three partners who previously worked at the same search engine marketing company [1, 3]. The company did not respond to requests for comment on the IPO or valuation changes [1, 3].

Shein will join a mixed IPO market in Hong Kong, where several recent companies raising over $1 billion have seen shares trade below their issue prices [1, 2, 3]. The company’s listing on September 1 will be closely watched as an important test of investor appetite for Chinese retail brands.