After a yearslong effort to go public, Shein has finally priced an initial public offering in Hong Kong that could help the fast-fashion giant fetch a valuation of about $27 billion. It is a far cry from the roughly $100 billion price tag the China-founded company once boasted. Shein’s IPO path has been a long one, complicated by tensions between China and the West. Known for selling ultracheap, trendy apparel, Shein is offering 280 million class B shares at 47.60 Hong Kong dollars to 49.50 Hong Kong dollars each. At the top of that range, it would bag net proceeds of about HK$13.86 billion, equivalent to US$1.77 billion. Despite the watered-down valuation, Shein’s IPO is set to be one of the biggest in Hong Kong this year, just behind those by well-established tech names like Nvidia supplier Zhongji Innolight 300308 and Luxshare Precision Industry, a supplier for Apple. Shein’s listing could offer a welcome boost as the company struggles with flagging sales. The retailer recorded a loss for the first quarter as regulatory headwinds in the U.S. and European Union weighed on its business. The company’s shares are expected to start trading in Hong Kong on Sept. 1. Goldman Sachs, Morgan Stanley and J.P. Morgan are among the joint sponsors. Cornerstone investors include Tencent, General Atlantic and Tiger Global Management.

On Friday, the SMI climbed 0.6 percent to 14,457 points. Market sentiment was bolstered by modest gains among the three index heavyweights—Nestlé, Novartis, and Roche—which advanced by as much as 1.0 percent. Graubündner Kantonalbank shares added 0.4 percent following the release of its first-half results. In addition, analyst comments drove price movements. Straumann, for example, gave up 3.3 percent to 92.82 CHF. Deutsche Bank downgraded its rating from “Buy” to “Hold” and lowered its price target from 119 to 99 francs. According to the analysts, Straumann faces several challenges that could lead to a period of share price consolidation. These include persistently high inflation and high interest rates—both of which could weigh on customer demand—as well as a possible slowdown in China. In addition, the unexpected CEO change, which occurred shortly after the Swiss dental implant manufacturer unveiled its new medium-term strategy, could also dampen perspectives.

Europe
European stock markets closed higher on Friday. According to data from MarketWatch, the Stoxx Europe 600 index gained 0.6%, to 654.2 points. In Paris, the CAC 40 and the SBF 120 each rose 0.4%. In Frankfurt, the DAX 40 climbed 0.6%, as did the FTSE 100 in London. THALES (-1.2%): The technology and defense group announced Friday that it had issued 1 billion euros in bonds in two tranches to finance its acquisition of Exail Technologies, a specialist in civilian and military robotics. BANCA MONTE DEI PASCHI DI SIENA (-1.3% in Milan): The Italian bank confirmed on Friday that it is launching all-stock tender offers for its competitors Banco BPM and Banca Generali, for a total value of 34.02 billion euros. This move comes as Monte dei Paschi seeks to fend off a cash-and-stock takeover bid launched in June by Intesa Sanpaolo.

United States
U.S. stocks rose Friday as a surging bitcoin and resilient crypto stocks helped lift sentiment. Treasury yields held near their highest levels in over a decade, however, and the S&P 500 posted its first weekly loss since late July. The Dow Jones Industrial Average rose 517.80 points, or 0.98%, to 53277.01. The S&P 500 gained 33.21 points, or 0.43%, to 7674.37, while the Nasdaq Composite advanced 113.29 points, or 0.43%, to 26180.45. Bitcoin rose 6% to over $77,000, posting its best weekly performance in more than two years. The rally was driven by a combination of forces: Treasury Secretary Scott Bessent’s bond buyback announcement, President Trump’s push for crypto-friendly legislation and big inflows into spot bitcoin ETFs. Coinbase COIN rose 8.2%, Robinhood jumped 14% and Strategy gained 6.1%. Ross Stores ROST rose 4.4% after the off-price retailer raised its full-year outlook on higher demand from both new and existing customers. BJ’s Wholesale Club BJ rose 5.6% after raising its full-year profit forecast. Looking ahead, next week brings second-quarter GDP and PCE inflation data Wednesday, followed by Nvidia’s fiscal second-quarter earnings. Fed Chairman Kevin Warsh makes his first appearance at the Jackson Hole Economic Policy Symposium Thursday through Saturday.

Asia
Stocks in Asia mostly fell on Monday. In Hong Kong, the Hang Seng Index is down 2.1 percent. Among individual stocks, Alibaba is plummeting 9.7 percent having announced a $10.2 billion capital increase. The proceeds are to be used for AI investments. The stock price of AI company Minimax is slumping 9.3 percent. Elsewhere in the technology sector, Tencent shed 3.8 percent and Meituan gave up 3 percent. The Shanghai Composite Index lost 0.7 percent. In Seoul, the KOSPI is down 3.1 percent. The two chip heavyweights, SK Hynix and Samsung Electronics, are weighing on the index with losses of 3.1 percent and 9.2 percent, respectively. The Japanese stock market is showing a mixed performance. While the Nikkei 225 Index shed 0.5 percent, the broader Topix is holding up well. Here, too, investors are selling off technology stocks. Kioxia slipped 5.7 percent, and Advantest gave up 2 percent.

Bonds
Long-dated U.S. government debt yields edged higher on Friday. The 10-year Treasury note yield gained 0.040 percentage point to 4.737%. Bond yields moved back up near their highest levels in over a decade even as Treasury Secretary Scott Bessent seeks to contain borrowing costs. Yields on 30-year Treasurys advanced to 5.28%.

Analysis
UBS raises Komax target to CHF 77 (68) - Neutral
UBS lowers BKW target to CHF 135 (145) - Neutral
Deutsche Bank downgrades Straumann to Hold (Buy) - Target CHF 99 (119)


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