Shein stock tumbled more than 10% in gray-market trading on Monday, the day before it was set to begin trading on the Hong Kong Stock Exchange, a sign of tepid investor enthusiasm heading into the listing. Futu Securities, Bright Smart, and Phillip Securities — three of Hong Kong's major brokerages — each quoted the stock down more than 10% shortly after gray-market trading got underway, according to Reuters.
At Futu, which leads Hong Kong's retail brokerage market by trading volume, the shares were last quoted near HK$42. Brokerages quote gray-market prices for a stock before it begins official trading on an exchange.
According to Reuters, citing unnamed sources, Shein priced its shares at HK$48.56 apiece, raising $1.7 billion and pegging its valuation at roughly $26.5 billion. The official pricing announcement is due later on Monday, with trading set to begin Tuesday under stock code 00625.
Bevis Ho, a senior ****** yst at Futu Securities, said the move signals "caution among both retail and institutional investors," explaining that right now "investors see greater potential in AI and robotics themes than in fast fashion."
Shein's current market value amounts to just over one-quarter of the roughly $100 billion it commanded at its private-market high in 2022, with the steep decline tied to tariff and duty changes across the U.S. and Europe that have eroded the core economics of its business.
#futu #securities #gray
At Futu, which leads Hong Kong's retail brokerage market by trading volume, the shares were last quoted near HK$42. Brokerages quote gray-market prices for a stock before it begins official trading on an exchange.
According to Reuters, citing unnamed sources, Shein priced its shares at HK$48.56 apiece, raising $1.7 billion and pegging its valuation at roughly $26.5 billion. The official pricing announcement is due later on Monday, with trading set to begin Tuesday under stock code 00625.
Bevis Ho, a senior ****** yst at Futu Securities, said the move signals "caution among both retail and institutional investors," explaining that right now "investors see greater potential in AI and robotics themes than in fast fashion."
Shein's current market value amounts to just over one-quarter of the roughly $100 billion it commanded at its private-market high in 2022, with the steep decline tied to tariff and duty changes across the U.S. and Europe that have eroded the core economics of its business.
#futu #securities #gray
3 hours ago
