Shein shares sink almost 9% on third day of trading

{"text":[[{"start":8.04,"text":"Shein shares tumbled as much as 10 per cent on the third day of trading following its Hong Kong listing in a turbulent debut for the fast-fashion online retailer."}],[{"start":18.92,"text":"The China-founded group’s stock fell as low as HK$41.24 (US$5.25) on Thursday, down from the listing price of HK$48.56. Shares closed almost 9 per cent lower at HK$42, valuing the company at $22.7bn."}],[{"start":38.6,"text":"“Basically it’s a disaster,” said Alicia Garcia-Herrero, chief economist for Asia-Pacific at Natixis."}],[{"start":47,"text":"The stock also fell as much as 10 per cent at the open on Tuesday’s debut but ended nearer the offer price following a flurry of late buying."}],[{"start":55.92,"text":"Goldman Sachs, one of the underwriters on Shein’s initial public offering, acts as the stabilisation agent and is able to buy shares on the open market to bolster the price."}],[{"start":null,"text":"

"}],[{"start":66.16,"text":"Shein said in its IPO prospectus that it had $15bn in cash and short-term securities on its balance sheet."}],[{"start":74,"text":"The company is set to be added to Hong Kong’s Hang Seng Composite index at the close of trading on September 14, according to Hang Seng Indexes."}],[{"start":82.72,"text":"The Hong Kong Exchange also debuted weekly and monthly options for the stock on Tuesday, as well as allowed investors to take short positions."}],[{"start":91.1,"text":"Shein’s IPO value represents a sharp fall from its peak. Pandemic lockdowns and social media hype from “Shein hauls” drew young consumers to its affordable fashion and earned the company a valuation of about $100bn following a 2022 private fundraising round."}],[{"start":107.52,"text":"However, investor enthusiasm began to ebb later that year and the next fundraising valued Shein at $66bn. Its previous attempts to list in New York and London were derailed by opposition from politicians and regulators amid scrutiny of its Chinese supply chain."}],[{"start":124.44,"text":"In July, Chinese regulators approved its application to list in Hong Kong."}],[{"start":129.12,"text":"Analysts said Shein’s falling share price reflected a wider investor malaise around consumer companies."}],[{"start":134.76,"text":"“The global consumer is starting to weaken in the US and Europe,” said William Bratton, head of cash equity research for Asia-Pacific at BNP Paribas."}],[{"start":143.76,"text":"“The other problem is tech: when I speak to clients, consumer is rarely discussed.”"}],[{"start":155.36,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1788430306_2223.mp3"}