Shein’s Hong Kong IPO Flop Highlights Growing ESG Risks for Ultra-Fast Fashion

On September 1, Shein listed on the Hong Kong Stock Exchange with a market value of roughly $27 billion (€23.24 billion), a drop of about 70 percent from its 2022 private-market peak of nearly $100 billion. The company abandoned attempts to list in London and New York after investors raised concerns about its supply-chain opacity and environmental record.

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Investigations by Greenpeace Germany (2022) and Greenpeace Global (2025) found hazardous chemicals—phthalates and PFAS—above EU limits in a significant share of Shein garments, including children’s clothing (18 of 56 items, 32 percent). A 2023 admission revealed two child-labour cases, which Shein said were remedied by contract termination and repatriation of affected workers. Independent reporting in 2024 and 2025 documented extreme overtime in Chinese factories, with workers logging up to 75 hours per week and receiving only one day off per month.

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France’s minister for ecological transition, Mathieu Lefevre, announced a new levy scheme targeting ultra-fast-fashion items, ranging from €0.50 for underwear to €12 for jackets, with a possible rise to €19.50 per item by 2030. Beijing’s commerce ministry, via spokeswoman Huang Ling, warned that China would take “necessary measures” if France proceeds with the law, citing protection of Chinese enterprises.

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• “Both cases were resolved swiftly, with remediation steps including terminating contracts with underage employees, ensuring the payment of any outstanding wages, arranging medical checkups and facilitating repatriation to parents/ legal guardians as needed,” — Can Shein, corporate statement

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• “A model that floods the market with thousands of new daily styles at single-digit price points can only exist by passing its true costs onto labour and the environment,” — Ildiko Almasi Simsic, sustainability expert, Solutions

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• “The harmful effects of ultra-fast fashion on our environment and our economy are well known and documented,” — Mathieu Lefevre, minister for ecological transition

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• “Should France persist in this course of action, China will take necessary measures to safeguard the legitimate rights and interests of Chinese enterprises,” — Huang Ling, commerce ministry spokeswoman

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