Shein shares fall sharply after Hong Kong stock market debut

Shares of e-commerce platform Shein suffered a steep decline in their first days on the stock market, according to a report published by the newspaper Folha de S.Paulo. According to the data released, the company's shares have lost 13.51% on the Hong Kong Stock Exchange since their debut last week.

During Thursday's trading session, the shares of the retail company fell again, dropping 8.7%. With this move, the stock closed at HK$42, equivalent to about 27.37 Brazilian reais, according to the outlet's report.

On its first day on the financial market, the company's shares had opened higher, at HK$48.56, equivalent to 31.65 Brazilian reais according to the same source. This difference marks a downward adjustment in the initial valuation the company obtained on the Asian market.

The behavior of these assets in the first sessions reflects the volatility that large digital retail companies typically experience when they enter the public capital market. For investors and analysts in the sector, the coming months will show whether the company is stable and how its business model is received by institutional shareholders.