View of Shein's booth during an expo in Guangzhou, Guangdong province. HUANG TAIMING/FOR CHINA DAILY

　　Shein's Hong Kong IPO is testing how public investors value a global e-commerce model being reshaped by slower growth, rising fulfillment costs and tighter rules for low-value parcels, industry experts said.

　　At the top of the proposed HK$47.6 ($6.07) to HK$49.5 range, Shein would have a market capitalization of up to $27 billion, roughly 70 percent below its nearly $100 billion private valuation in 2022.

　　Pan Helin, a member of the expert committee for information and communication economy under the Ministry of Industry and Information Technology, attributed the valuation reset partly to the maturity of e-commerce, where growth has slowed and competition has intensified.

　　"Shein's rapid rise in 2022 coincided with overseas supply-chain disruptions and sharp price increases, while today's market conditions leave less room for the exceptional growth expectations reflected in its earlier private valuation," Pan said.

　　Pan added that Hong Kong investors generally apply more restrained valuations to mature internet businesses, particularly apparel e-commerce, which operates in a largely established market. Capital has also recently shifted toward artificial intelligence-related companies, further limiting the valuation premium available to traditional e-commerce platforms, he said.

　　Although HK-listed e-commerce and internet companies are currently trading at relatively low valuations, a Hong Kong listing could help Shein reduce the compliance risks associated with cross-border fundraising and facilitate its domestic operations, Pan noted.