HK Stock Market Move | Xiyin-W (00625) dropped nearly 4% in the early session. The company will quickly be included in the Hang Seng Composite Index. Its listing valuation is at a discount, implying multiple concerns.

SHEIN-W (00625) fell nearly 4% in early trading. As of this writing, it is down 3.78%, priced at HK$44.26, with a turnover of HK$75.2304 million. In news, on September 1, SHEIN was listed on the main board of the Hong Kong Stock Exchange, becoming the largest fashion brand IPO in Hong Kong by size in 2026. On September 2, the Hang Seng Index Company announced that SHEIN meets the criteria for fast track inclusion in the Hang Seng Composite Index, and will be included in the Hang Seng Composite Index and its classified indices after the market closes on September 14 (Monday), taking effect on September 15 (Tuesday). Guotou Securities International previously pointed out that based on a net profit of $2.064 billion in 2025, SHEIN's current issuance corresponds to a PE of approximately 12.4-12.9 times. Compared to its peers, Inditex at about 30 times and H&M at about 22 times, SHEIN's valuation is significantly discounted. However, this listing valuation has sharply decreased by about 70% compared to the peak of around $100 billion in the 2022 private equity market, with the discount reflecting the market's re-evaluation of its slowing growth, profit volatility, and tariff risks.