The arrow of chi-in lands at 9% when it's included in the Hong Kong Stock Exchange
Source: Sky News Arabia Business
The story in brief
The stock of the Chinese online clothing trading company Shein fell sharply at the beginning of its trading on the Hong Kong Stock Exchange, Tuesday, as it fell by more than 9 percent in the first minutes of trading. The Chinese online clothing trading company Shein shares were traded at a price ranging between 44 Hong Kong dollars (5.6 US dollars) and 45 Hong Kong dollars, while the offering price per share was 48.56 Hong Kong dollars, giving the company’s market value about 26 billion US dollars. Shein has spent many years preparing to go public. The company, which was founded in China and has now moved its headquarters to Singapore, previously sought to list its shares on the London and New York stock exchanges.
Detailed summary
The stock of the Chinese online clothing trading company Shein fell sharply at the beginning of its trading on the Hong Kong Stock Exchange, Tuesday, as it fell by more than 9 percent in the first minutes of trading. The Chinese online clothing trading company Shein shares were traded at a price ranging between 44 Hong Kong dollars (5.6 US dollars) and 45 Hong Kong dollars, while the offering price per share was 48.56 Hong Kong dollars, giving the company’s market value about 26 billion US dollars. Shein has spent many years preparing to go public. The company, which was founded in China and has now moved its headquarters to Singapore, previously sought to list its shares on the London and New York stock exchanges. Reports said that both attempts failed due to Beijing's opposition to listing its shares outside China. Shein said it intends to partly use the proceeds from the IPO to develop its technology infrastructure and enhance its brand. The company has recently been facing pressure as a result of new customs duties rules in the US and European markets.
Chi In Chinese
Background & context
This story sits within GCC's broader reform agenda and efforts to grow Capital Markets as a pillar of non-oil GDP. The region benefits from supportive energy prices, expansionary government budgets, and rising interest from sovereign wealth funds and foreign investors.
Key numbers & facts
- The Chinese online clothing trading company Shein shares were traded at a price ranging between 44 Hong Kong dollars (5.6 US dollars) and 45 Hong Kong dollars, while the offering price per share was 48.56 Hong Kong dollars, giving the company’s market value about 26 billion US dollars.
- The Chinese online clothing trading company Shein shares were traded at a price ranging between 44 Hong Kong dollars (5.6 US dollars) and 45 Hong Kong dollars, while the offering price per share was 48.56 Hong Kong dollars, giving the company’s market value about 26 billion US dollars.
Key points
- The stock of the Chinese online clothing trading company Shein fell sharply at the beginning of its trading on the Hong Kong Stock Exchange, Tuesday, as it fell by more than 9 percent in the first minutes of trading.
- The Chinese online clothing trading company Shein shares were traded at a price ranging between 44 Hong Kong dollars (5.6 US dollars) and 45 Hong Kong dollars, while the offering price per share was 48.56 Hong Kong dollars, giving the company’s market value about 26 billion US dollars.
- Shein has spent many years preparing to go public.
- The company, which was founded in China and has now moved its headquarters to Singapore, previously sought to list its shares on the London and New York stock exchanges.
Why this matters
This matters because activity in Capital Markets, Banking shapes capital flows, hiring and investor sentiment across GCC.
Economic & market impact
Potential impact: - Listed GCC equities and indices may see direct trading reaction. - Banks may see shifts in mortgage, project finance and corporate lending pipelines.
GCC angle
For the rest of the GCC, this is a signal on the pace of activity in Capital Markets, Banking. Capital flows and regulatory decisions in one Gulf state typically travel across borders given the similar economic structures and the coordination inside the GCC framework.
Risks & uncertainty
There is uncertainty around the read-through: projections can be moved by swings in oil prices, by US monetary policy tightening that most GCC central banks track via dollar pegs, and by regional geopolitical events. Headline numbers may also be revised when subsequent official data is published.
What happens next?
Watch for upcoming disclosures from listed names in Capital Markets, Banking, official macro releases for GCC, and any commentary from regulators or sovereign wealth funds. Tharwa will refresh this briefing as new public information becomes available.
Sources used
This is an original Tharwa briefing based on the available source material. Read the full article from the publisher.
Tharwa Weekly
One weekly digest of the GCC economy, companies, markets and investment opportunities — clear and concise.