Sky Xu, the elusive founder of Shein, will soon find himself in the public eye as the company prepares for a major move. Around July 10, China’s securities regulator gave the green light for Shein to pursue an IPO in Hong Kong.
The e-commerce giant aims for a valuation between $40 billion and $50 billion, raising $2 billion to $3 billion to fuel its growth. The Hong Kong Stock Exchange scheduled a key hearing for July 16, marking a critical step in this process.
However, this valuation is a significant drop from Shein’s estimated $66 billion worth during a 2023 fundraising round, signaling a potential 40% decrease. Investors are watching closely as the fast-fashion titan adjusts its expectations.
This Hong Kong listing follows other attempts to go public which fell through. Originally, Shein considered New York and London for its IPO, but political and regulatory roadblocks in those markets shut those paths down. The US side raised concerns about Shein’s supply chain and Chinese connections, while in the UK regulatory scrutiny also stalled progress.
The IPO could happen as soon as late August, positioning Shein's public debut as one of the standout market events this year.
Xu’s personal involvement is expected to ramp up sharply due to public listing demands. Known for keeping a low profile despite Shein’s global reach across 160 countries, Xu recently made a rare public commitment. In February 2026, he reiterated Shein’s dedication to Chinese manufacturing and said the company would invest over 10 billion yuan (around $1.5 billion) into that sector.
The company now faces heated competition from rivals like Temu and TikTok Shop. Fast fashion is also under pressure from European regulations aimed at waste, labor, and environmental impacts.
Shein’s complex and opaque corporate structure raises questions investors will want answered, such as the details of Xu’s control, governance, and related-party deals.
