Shein seeks capital through a loss as SGX lowers the entry threshold
Shein and Alibaba are selling new shares in Hong Kong while SGX cuts lots to 10 units. Asian markets are courting capital as investors weigh the gap between price and return.
Economics & Markets··Morning
Shein opens its IPO book with a 99 million dollar loss
Shein has begun book building in Hong Kong for an offering of as much as 13.86 billion Hong Kong dollars. It plans to sell 280 million shares at 47.60 to 49.50 Hong Kong dollars, set the price on 31 August and begin trading on 1 September. The top of the range values the company at 26.81 billion dollars. The offering follows a harder operating quarter: Shein reported a 99 million dollar loss after the United States ended the import-duty exemption for small packages. The company also recorded a 328 million dollar fair-value charge on convertible redeemable preferred shares after an accounting change. Shein, which sells in about 160 countries, is asking the market to price its growth alongside higher trade costs and thinner margins.[1]
Alibaba's 10.2 billion dollar raise sends Burry to JD.com
Michael Burry exited Alibaba and built a large position in JD.com. He cited the share issuance behind Alibaba's 10.2 billion dollar Hong Kong capital raise for artificial intelligence and his expectation that return on invested capital will keep falling. Alibaba priced the follow-on offering at 112.70 Hong Kong dollars a share after second-quarter profit fell 75 per cent while revenue rose 9 per cent. Its American depositary receipts are down 18.6 per cent this year and its Hong Kong shares are down 13.9 per cent. Burry said the stock would need to fall by about half before he considered it again. His move is a concrete investor response that judges new capital by the prospective return to existing shareholders as well as its stated growth purpose.[2]
SGX cuts lots to 10 units after a 12-year trading high
Retail securities daily average value on SGX rose 52 per cent in the financial year to 30 June 2026 and reached a 12-year high. To broaden access, the exchange will cut the standard lot from 100 units to 10 from 5 October for instruments priced above 10 Singapore dollars and up to 100 Singapore dollars. The first stage covers 11 stocks, including UOB, OCBC and DBS. Assets under management in SGX-listed exchange traded funds also grew 43 per cent, led by Straits Times Index and gold funds. The rule does not bring a new company to market; it changes access by letting retail investors enter existing shares with smaller amounts of money.[3]
