Winston Ma, Professor at NYU School of Law and former North America Head of China’s Sovereign Wealth Fund CIC, explains how the dramatic drop in valuation of Shein looks like what happened to Zoom during COVID, as he tells Asia One.
Asia One:
“Shein’s US$27 billion valuation targets a new equilibrium.
“Public investors are no longer paying for hyper-growth; they are underwriting a mature cross-border platform that must now defend its profit margins against trade tariffs, higher compliance costs, and regulatory scrutiny in both US and China.
“Also on valuation, Shein is experiencing its ‘Zoom moment.’ Just like Zoom, Shein’s Covid-era business model is now being tested by the new market, where investors have aggressively rotated into AI stack-related investments.
“Robust demand would affirm Hong Kong’s role as the pragmatic listing venue for large consumer and e-commerce names that face hurdles elsewhere.”
Winston Ma is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers’ request form.
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