HK Stock Market Move | Xiyin-W (00625) fell over 3% on the second day of its listing as the market recalibrates growth rates and tariff risks.

Shein-W (00625) fell over 3% on the second day of its listing. The stock plunged nearly 10% shortly after opening yesterday, but the decline subsequently narrowed significantly. As of the time of writing, it has dropped 3.18%, trading at HKD 46.96, with a transaction volume of HKD 145 million, and its total market value has fallen below HKD 200 billion. As a global online fashion and lifestyle company, Shein focuses on the apparel category and operates through a dual model of proprietary brands and third-party marketplaces. In terms of performance, Shein's net revenue for 2025 is projected to be USD 41.847 billion, with a net profit of USD 2.064 billion. However, in the first quarter of this year, Shein reported revenue of USD 9.052 billion, with year-over-year growth down to around 1%, and a net loss of USD 99 million, primarily due to a fair value loss of approximately USD 328 million on convertible redeemable preferred stock. Guotou Securities International previously indicated that based on a net profit of USD 2.064 billion for 2025, Shein's current issuance corresponds to a PE ratio of approximately 12.4-12.9 times. Compared to its peers, Inditex at about 30 times and H&M at around 22 times, Shein's valuation shows a significant discount. However, this listing's valuation has shrunk by nearly 70% from the peak in the private equity market of about USD 100 billion in 2022, reflecting the market's repricing of its slowing growth, profit volatility, and tariff risks.