HK Stock Market Move | (00625) Falls over 6% in morning session, down nearly 30% from its IPO price; Jefferies previously rated it "Underperform"

(00625) Falls over 6% in morning session, hitting a low of HK$34.76, down nearly 30% from its IPO price. As of press time, it is down 5.67% at HK$35.28, with a turnover of HK$18.4637 million. On the news front, Shein met the fast-track inclusion requirements and was included in the Hang Seng Composite Index and its sub-indices after market close on September 14, effective at market open on September 15. However, due to its "weighted voting rights" structure, it will still need about 7 months before it can be included in Stock Connect. It is worth noting that Jefferies previously issued a research report, initiating coverage on Shein with an "Underperform" rating and a target price of HK$26. The firm pointed out that Shein's profitability relies on low-cost parcels, the dense concentration of suppliers in Guangdong, and supplier-funded innovative initiatives. As these cost advantages rise, its returns are expected to weaken and its valuation will come under pressure; it also forecast that the company's earnings per share for fiscal years 2026 and 2027 will be 3% and 20% below market consensus, respectively.