HONG KONG, Sept 2 (Reuters) – Shares of online fast-fashion retailer Shein fell more than 5% on ‌Wednesday, a day after a lacklustre debut session ‌following a long-awaited initial public offering.

The stock tumbled as much as ​10% on Tuesday but recovered to close to its HK$48.56 issuance price.

On Wednesday, the stock closed at HK$46 on its second day of trading in Hong Kong, while the ‌city’s Hang Seng ⁠Index closed flat.

Shein’s share price rallied late Tuesday and its rebound wasthe result of so-called ⁠stabilisation measures which can beapplied to large listings to avoid sharp declines on a debutday, according to a source ​and ​analysts.

Shein raised $1.7 billion in its ​IPO which valued the ‌firmat $26.5 billion, nearly a quarter of its peak of nearly $100billion in 2022.

Higher import duties in key markets, growing regulatoryrisks and intensified competition from rivals are hampering Shein’s growth prospects, investors and analysts said.

“Shein’s weak performance reflects investors ‌reassessing agrowth story that has ​become harder to underwrite,” said BrandonHo, ​head of investment ​advisory for Singapore at Arta Finance.

“Revenue growth ‌has slowed over the past ​few years andmargins ​are under pressure, while higher tariffs and customscosts in the U.S. and EU are weakening the ​economics of itslow-cost ‌cross-border model.

(Reporting by Donny Kwok and Summer Zhen ​Hong Kong; Writingby Scott Murdoch; Editing by Christopher ​Cushing, EdwinaGibbs and Louise Heavens)