HK Stock Market Move | Xiyin-W (00625) fell more than 8%, with a cumulative drop of over 20% in its stock price within four days of listing, resulting in a market value evaporating by over 40 billion Hong Kong dollars.

Xi Yin-W (00625) saw its afternoon decline expand to over 8%, hitting a low of HKD 38.3, a new record low since its debut, and a drop of 20% from its IPO price. In just four days since its listing, the market capitalization has evaporated by HKD 40 billion. As of the time of writing, it has dropped by 8.38%, trading at HKD 38.48, with a transaction volume of HKD 259 million. The prospectus shows that Xi Yin's net income for 2025 is projected to reach USD 41.847 billion, with year-on-year growth slowing from 41.1% in 2023 to 8%; in the first quarter of 2026, the net income grew by only 1.1% year-on-year, and a book loss was recorded due to changes in the fair value of convertible redeemable preferred shares. Additionally, the U.S. has canceled the tax exemption policy for small packages under USD 800, and the European Union will impose fees on low-priced small packages starting in July 2026, which will directly impact the low-cost direct mail model. At the same time, the Hang Seng Index Company announced that Xi Yin meets the requirements for fast-track inclusion in the Hang Seng Composite Index and will be added to the Hang Seng Composite Index and its classification index after market close on September 14, with effect starting September 15. It is worth noting that as Xi Yin-W operates under a "dual-class share" structure, its inclusion in the Stock Connect program requires meeting additional criteria, including liquidity requirements and listing duration requirements (listed for a minimum of 6 months + 20 trading days). Guotou Securities International previously pointed out that based on a net profit of USD 2.064 billion in 2025, the current issuance valuation corresponds to a price-to-earnings ratio of about 12.4-12.9 times. Compared to peers such as Inditex at around 30 times and H&M at about 22 times, Xi Yin's valuation is significantly discounted. However, the listing valuation has drastically declined by approximately 70% from the peak of around USD 100 billion in the private equity market in 2022, reflecting the market's repricing of its slowing growth, profit volatility, and tariff risks.