Shares of fast-fashion company Shein fell as much as 10% in Hong Kong, dropping to as low as HK$36.30 in intraday trade, as regulators in Australia and New Zealand issued recalls for a contact lens product distributed by the retailer. The stock decline extended losses that first surfaced during the company’s turbulent debut on the exchange earlier this month. As reported by CNBC, Shein’s Hong Kong-listed shares were 9.49% lower at HK$36.26 following the news.
Shein Shares Plunge Following International Contact Lens Recall
The recall centers on the Syliuwa Zero-Powered Contact Lenses, which are white lenses marketed for cosplay and makeup use. According to 1News, these items were sold on Shein’s New Zealand website from August 7, 2024, to August 19, 2026, under product code sb2408056243278800. In Australia, the affected costume lenses were available for purchase between August 7, 2024, and August 15, 2026.
Bacterial Contamination Sparks Regulatory Action
The recall was triggered after testing revealed contamination in the product packaging. New Zealand’s Ministry of Business, Innovation and Employment stated that a sample of the solution in which the lenses were packaged tested positive for Burkholderia cepacia complex, a bacterial contaminant. The Australian Competition and Consumer Commission issued a similar recall notice over concerns that the packaging could be contaminated with the bacteria.
Regulators and safety agencies warned that exposure to Burkholderia cepacia complex may pose a risk of eye irritation or serious infection. Authorities noted that at least one incident has been reported in the United Kingdom involving a user who developed an eye infection after using the product.
Company Response and Refund Instructions
Shein stated that it would contact affected customers directly to arrange full refunds to their original payment method. Owners of the recalled lenses were urged to stop using the product immediately and dispose of it safely.
Customers were also asked to confirm receipt of the recall notice to help the company account for all affected products and process refunds. Individuals who do not hear from Shein directly or have questions regarding the recall were advised to contact the company via email. Furthermore, consumers experiencing eye symptoms such as redness, pain, discharge, or blurred vision after wearing the lenses were advised to seek prompt medical attention.
Broader Market Pressures on Shein
The contact lens recall compounds a challenging period for the fast-fashion giant. Shein listed on the Hong Kong exchange in early September, raising HK$13.6 billion ($1.7 billion) through an initial public offering that valued the company at just over $26 billion. However, shares fell as much as 10% on their debut day against an IPO price of HK$48.56.
The company’s valuation stands well below its 2022 peak of nearly $100 billion. As CNBC TV18 noted, Shein has faced mounting pressure from higher tariffs, tighter regulatory scrutiny, and competition from rivals like PDD Holdings’ Temu and Alibaba’s AliExpress. Market analysts suggest the company must redefine its value proposition beyond low prices and constant novelty by curating marketplace offerings, improving its brand image, and developing services as regulators grow increasingly critical.
