Ultra-fast-fashion brand Shein has been valued at $26.2bn (£19.3bn) after its first day of public trading, following a long quest to list on the stock market.

The company was once estimated to be worth nearly $100bn, but has faced heated competition, trade tensions and questions over the ethics of its supply chain.

Shein's share price fell in the early hours of trading but recovered ground before closing down just 0.12%.

The company's attempts to list in the UK and US were scuppered after supply chain concerns and criticism of its environmental impact.

On Monday, Shein priced its shares at HK$48.56 each, raising ‌13.6 billion Hong Kong dollars ($1.7bn; £1.3bn) from the listing.

That gave the company a stock market valuation of $26.3bn.

Shein's shares fell by as much as 10% in early trading before the losses eased. They closed at $48.50, leaving it valued at $26.15bn.

Shein became hugely popular, especially among younger people, due to its ability to source the very latest fashions at ultra-low prices through a vast network of factories in China.

At a ceremony to celebrate the listing, chief financial officer Leigh Gui said the company's model of selling large numbers of small orders with rapid payment options now reaches about 160 markets worldwide.

"Let global consumers enjoy the sound of fashion," he said after a gong was struck to mark the start of trading.

Shein has more than 273 million active customers who placed a total of more than a billion orders in the year to the end of March 2026, the firm said in a filing ahead of the listing.

But it now faces higher costs, regulatory scrutiny and more competition, said Charu Chanana, chief investment strategist at Saxo.

For customers, the slump in Shein's shares is a sign that the firm's cheap prices are "becoming harder to sustain", which may lead to higher prices, she added.