Shein aims for almost $27bn valuation in stock market debut
Monday, 24 August 2026
Warm-up
- What do you know about fast-fashion brands?
- Have you ever bought clothes online? What was good or bad about it?
- Why might a company choose one stock market over another?
Vocabulary
- valuation
- an estimate of how much a company is worth in money terms
- debut
- a first public appearance or start, for example on a stock market
- scrutiny
- careful and critical examination by officials or the public
- exemption
- permission not to follow a rule or pay a tax that others must pay
- tariff
- a tax on goods when they are brought into a country
- offset
- to balance or reduce the effect of a cost or problem
- rival
- a competing person or company in the same market
- investor
- a person or company that puts money into a business to earn profit
Reading
Fast-fashion giant Shein plans to list its shares in Hong Kong on 1 September. The company could reach a market valuation of about $26.8bn, raising up to $1.77bn by selling nearly 280 million shares. That is far below the $100bn it was valued at in 2022, after weaker sales growth and higher costs.
Shein was founded in China and now has its headquarters in Singapore. It sells ultra-cheap clothes online in more than 150 countries, supported by factories in China. The debut is backed by investors Goldman Sachs, Morgan Stanley and JP Morgan. Attempts to list in the US and London stalled under regulatory scrutiny.
Sales in the US slowed after President Donald Trump ended an import duty waiver known as the de minimis exemption. Shein posted a $99m loss in the first quarter, compared with $395m net income a year earlier. The firm says it may raise US prices to offset higher duties. Analysts add that tariffs, supply chain concerns and rivals could test investor confidence.
Comprehension
- Where and when will Shein make its stock market debut?
- What market value could the listing give the company?
- How much money could the share sale raise at the top range?
- Which Wall Street banks are backing Shein’s IPO?
- What US policy change hurt Shein’s sales?
Grammar focus
Advice vs obligation: should vs must / have to
Should gives advice or a recommendation; must/have to express obligation or necessity. For example: "Managers **should encourage** better quality (advice)" vs "Managers **must ensure** products meet rules (obligation)." (Example 2 constructed.)
- The firm **says it may raise** US prices to offset higher duties.
- Managers **must ensure** products meet rules to avoid fines.
Grammar exercise
Complete the sentences with the correct form of the verb in brackets.
- Analysts advise the firm (raise) ___ prices to protect profits.
- Under new rules, online sellers (charge) ___ sales tax.
- To keep customers, Shein (offer) ___ clearer return policies.
- To avoid losses, the company (have) ___ to cut costs immediately.
- For long-term growth, managers say Shein (invest) ___ more in quality.
Discussion
- Should fast-fashion prices rise to cover higher duties and costs?
- Is Hong Kong a better place to list than London? Why?
- How do import taxes affect shoppers in your country?
- What should big retailers do about environmental concerns?
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