Shein Global Holdings Ltd. has lost approximately $5 billion in market value since its initial public offering, marking one of the worst opening weeks for a major Hong Kong listing. Despite a 3.2% surge on Monday, the shares closed 19% down from the HK$48.56 offering price. This performance ranks as the second-worst debut among companies raising at least $1 billion in Hong Kong, trailing only Baidu Inc.'s 19.9% plunge.

The company's valuation has fallen from roughly $26 billion to about $21 billion. Investor skepticism stems from weakening profitability, regulatory headwinds, and intensifying competition. Once valued at $100 billion during the pandemic e-commerce boom, Shein now faces a tougher environment.

The weak performance highlights limited appetite for traditional e-commerce as capital shifts toward AI and robotics. Bloomberg Intelligence analyst Catherine Lim noted the selloff was driven by company-specific concerns and broader skepticism toward cross-border e-commerce models amid tariffs and tighter regulation. Shein posted a $99 million loss in the first quarter, compared to a $395 million profit a year earlier, with revenue growth slowing to 8% from 21% in 2024.

The decline underscores challenges for the retailer's marketplace transition and broader sector headwinds.