Shein CEO Sky Xu's wealth slumps US$15 billion after whittled-down IPO

Shein CEO Sky Xu’s wealth slumps US$15 billion after whittled-down IPO The firm is set to go public at just over a quarter of the US$100 billion it was worth in 2022 Summarise Share Add BT as a preferred source Add BT as a preferred source Published Mon, Aug 31, 2026 · 08:20 AM Sky Xu’s fortunes have turned as Shein firm battles tariffs, political scrutiny and growing competition. PHOTO: REUTERS CHINESE fast fashion business Shein was once worth more than the parent companies of H&M and Zara, giving its reclusive boss Sky Xu a net worth of more than US$23 billion. But the fortunes of Xu – also known as Chris Xu or Xu Yangtian – have turned in four short years as Shein battles tariffs, political scrutiny and growing competition. Shein is set to go public in Hong Kong on Tuesday (Sep 1) at just over a quarter of the US$100 billion it was worth in 2022 . Xu’s personal wealth, based on his 30 per cent stake, falls to about US$8 billion at the listing price, according to the Bloomberg Billionaires Index. The more than US$15 billion decline in Xu’s riches also comes down to poor timing. Chinese consumer brands that went public over the past year or so initially drew strong investor interest until a string of artificial intelligence companies made their debuts, stealing their thunder and minting new billionaires. Asean Intelligence Get insights into businesses across South-east Asia Get the free report “They definitely missed the window,” Sam Wyatt, an international equities portfolio manager at U Ethical Investors based in Melbourne, said of Shein’s initial public offering. E-commerce is now a less attractive story to investors than AI, he said. While some AI companies have delivered blistering first-day gains, the overall performance of Hong Kong IPOs has been mixed. SEE ALSO How Shein had to make peace with China to finally go public​ ‘Disposable’ clothes, oversight risks: Shein IPO will not mask sustainability challenges Shein’s up to US$1.8 billion Hong Kong IPO fully covered by investor demand: sources Shein finds there’s no place like China after Vietnam warehouse experiment disappoints More Shares of beverage maker Eastroc Beverage Group and pig breeder Muyuan Foods are both trading below their listing prices after debuts that exceeded US$1 billion. The brothers who founded Mixue Group, a fast-growing bubble-tea chain, have seen their wealth shrink by more than a fifth since the company went public in 2025 . A Shein spokesperson did not respond to a request for comment. Xu, 43, started Shein in 2012 with three partners. They had all worked at the same search engine marketing company and used their experience to grow Shein into an online retailer known for cheap, trendy clothes. The business flourished during the Covid-19 pandemic, when young shoppers fuelled an explosion of sales. Revenue growth has slowed since then, according to data Shein disclosed in July ahead of its IPO. One of the company’s key strategies – sidestepping import taxes in the US and Europe through small shipments – was upended in 2025 when the Trump administration ended a key tariff exemption and the EU announced a fixed customs duty on small parcels. “The direction of the market is changing, not in Shein’s favor, especially in the recent years,” said Sheng Lu, a professor in fashion and apparel studies at the University of Delaware. AI is also levelling the playing field for Shein’s competitors, who would be able to cater better and more quickly to changing consumer tastes, he said. Shein tried to go public during its heyday but struggled to gain traction in New York and London , where the company faced scrutiny over its labour practices. The company’s supply chain is rooted in China but relies on the US and Europe as key markets. Executives distanced the brand from its Chinese origins and moved its global headquarters to Singapore , though they ultimately needed Chinese regulators’ approval for an IPO . “Shein was the hottest topic two to three years ago – a Chinese firm that could have IPO’ed in the US because it already had a strong fast fashion brand in the US and strong consumer recognition,” said Jason Hsu, chief investment officer at Rayliant Global Advisors. “But the hot topic now is AI.” BLOOMBERG Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free. Shein IPO Share with us your feedback on BT's products and services Feedback TRENDING NOW Why disciplined stewardship matters when managing wealth in uncertain markets Asia-Pacific aviation: is up really the only way? Bank of Singapore steps up FIM push as Asia’s wealthy go global Can capital trust Myanmar again?