HK Stock Market Move | Shein-W (00625) rebounds over 4%; company officially included in Hang Seng Composite Index, inclusion in Stock Connect still requires time.

Shein-W (00625) rebounds over 4%. As of press time, it is up 3.74% at HK$37.76, with a turnover of HK$44.015 million. On the news front, Hang Seng Indexes Company announced that Shein meets the requirements for fast-track inclusion and will be included in the Hang Seng Composite Index and its sub-indices after market close on September 14. It will take effect at market open on September 15. It is worth noting that because Shein-W has a "weighted voting rights" structure, it will still take about 7 months before it can be included in Stock Connect. Public information shows that Shein is a globally leading fashion cross-border e-commerce company and has been affected in recent years by the overseas cancellation of small-value tax exemption policies and intensifying competition. Huaxi said the company's profit is under pressure, but due to tariffs and short-term investment, adjusted net profit is expected to recover slowly; in the medium to long term, it is optimistic about the company's growth space from increasing market share in emerging markets, category expansion, and its platformization model, and as fulfillment expense ratio and marketing expense ratio decline, there is room for net profit margin improvement.