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For more than a decade, Sky Xu built one of the world’s largest fast-fashion empires while staying almost entirely invisible. That’s about to change, whether he likes it or not.
Shein, the e-commerce giant Xu founded in 2012, received approval from China’s securities regulator for a Hong Kong IPO around July 10. The company is targeting a valuation between $40 billion and $50 billion, with an initial fundraise of $2 billion to $3 billion. A listing committee hearing at the Hong Kong Stock Exchange was scheduled for July 16.
A valuation haircut and a change of plans
Here’s the thing about that $40 billion to $50 billion target: it represents a meaningful discount from where Shein was valued just a few years ago. A 2023 funding round pegged the company at roughly $66 billion, meaning the IPO would effectively mark a valuation decline of up to 40%.
The Hong Kong listing itself is a Plan C of sorts. Shein previously explored going public in both New York and London, but regulatory headwinds in both markets effectively shut those doors. The US listing ran into political friction over the company’s supply chain practices and ties to China, while the London attempt similarly stalled amid scrutiny from UK regulators and lawmakers.
The listing could happen as soon as late August, which would make it one of the most significant IPO events in the Hong Kong market this year.
The man behind the curtain steps forward
Sky Xu has made very few public appearances throughout Shein’s meteoric rise. For a company that operates in more than 160 countries and generates billions in revenue, its founder has been remarkably content to stay in the background.
As part of the IPO roadshow and the regulatory demands of a public listing, Xu is expected to adopt a far more prominent public stance. In a February 2026 speech, Xu publicly reaffirmed Shein’s ties to Chinese manufacturing. Xu also pledged over 10 billion yuan, roughly $1.5 billion, in investments into Chinese manufacturing sectors.
What this means for investors
Shein faces aggressive competition from Temu, ByteDance’s TikTok Shop, and a constellation of other platforms all fighting for the same price-conscious global consumer. The fast-fashion model itself faces growing regulatory pressure in Europe, where proposed legislation could impose costs related to textile waste, environmental disclosures, and labor standards.
Shein’s organizational setup has historically been described as opaque, with a complex web of entities spanning multiple jurisdictions. Analysts and institutional shareholders will demand clarity on everything from corporate governance to related-party transactions to the precise nature of Xu’s controlling stake.
The valuation markdown from $66 billion to a potential $40 billion to $50 billion range actually works in the company’s favor from one perspective: it lowers the bar for post-IPO performance.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
English (US) ·