Shares in fast-fashion giant Shein plummeted on their highly anticipated stock market debut in Hong Kong, marking a disappointing start for the firm's long-awaited IPO.

The company's shares fell 8.7% lower at HK$44.4 each on Tuesday morning, raising concerns that investors are not convinced of its ability to sustain growth.

Shein's valuation has dropped significantly since its estimated worth of nearly $100bn (£74bn) in 2020, now valued at around a quarter of that figure due to various challenges such as heated competition and trade tensions.

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The firm's popularity among younger people can be attributed to its ability to source the latest fashions at ultra-low prices through a vast network of factories in China, with over 273 million active customers placing more than a billion orders in the year to March 2026.

"Let global consumers enjoy the sound of fashion," said Leigh Gui, Shein's chief financial officer, as he celebrated the company's model of selling large numbers of small orders with rapid payment options now reaching about 160 markets worldwide.

The disappointing debut suggests that investors are increasingly drawn to technology companies and have become skeptical about the fast-fashion industry's prospects.

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"Investors have learned to be sceptical, while concerns over sustainability and ethical issues add to the complexity of Shein's share sale," said Louise Deglise-Favre, a fashion industry analyst from GlobalData.

Shein was founded in China in 2008 and is now headquartered in Singapore, with its long road to the stock market highlighting geopolitical pressures and regulatory scrutiny faced

The company's business had surged during the Covid-19 pandemic as people turned to online retailers, but it has since faced resistance from US lawmakers over concerns of forced labour in its factories.