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HONG KONG (AP) — Shares in fast-fashion online retail giant Shein fell as much as 10% after they began trading on Hong Kong’s stock market Tuesday, after a long delay in the company’s plans to list its shares publicly.

Shein raised about $1.7 billion, priced at HK$48.56 ($6.19) a share, in its initial public offering in Hong Kong in one of the city’s biggest new share sales this year. “Shein’s Hong Kong listing marks a new starting point,” said Leigh Gui, Shein’s chief financial officer, in a short speech at its listing ceremony.

In early trading, the shares fell to below HK$44 before losses narrowed later in the day. It closed nearly unchanged at HK$48.50.

Shein’s appeal to customers has been built on ultra-fast, affordable fashion, delivered from China to the West in just days. The end of “de minimis” tariff exemptions in the U.S. and the European Union has raised duties for low value parcels from China, including Shein’s products. Higher logistics costs partly due to the war in Iran also have squeezed the company’s low-price business model and profitability.

Tariff costs have forced Shein to raise prices, “cutting into its main advantage,” said Jacob Cooke, CEO of WPIC Marketing + Technologies.

Shein recorded a $99 million loss in the first three months of this year, compared with a $395 million profit in the same period a year earlier.

Earlier, Shein, pronounced “she-in,” explored listing its shares in New York and London. It moved its headquarters from China to Singapore around 2021. But increasingly strict scrutiny by Beijing and by regulators in the U.S. and Europe led it to embrace its Chinese roots and switch to a listing in Hong Kong.

Launched in 2012 in China, much of Shein’s operations were in the southern province of Guangdong before it shifted its corporate headquarters out of the country.

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“Guangdong is Shein’s roots, and the starting point of our journey,” its founder Sky Xu said in a speech in February.

Pivoting its focus back to China also highlighted the advantages Shein derives from the supply chain system that “only exists” in Guangdong, said William Ma of GROW Investment Group, referring to its small-batch, fast response manufacturing model.

Shein has hit other roadblocks in expanding in Europe. In February, the EU launched a probe against the company with a focus on “illegal” products, including alleged child sexual abuse material.

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In May, Shein acquired San Francisco-based eco-friendly clothing retailer Everlane, a move that some analysts said was not the best fit.

The company’s market value was roughly $27 billion as it listed in Hong Kong, a fraction of its peak valuation a few years ago.

“Shein has probably missed its golden listing window due to the shift of momentum toward AI and tariffs, which can affect valuations and profitability,” said Gary Ng, a senior economist for Asia Pacific at French bank Natixis.

Still, Shein’s listing is welcome news for Hong Kong, as the Chinese territory makes increasing efforts to hold onto its role as a global financial hub following a downturn in 2023.

Hong Kong’s stock exchange has experienced a strong year for IPOs so far, raising more than $40 billion. And there is a backlog of companies seeking to list there, said Lorraine Tan at investment research firm Morningstar.