Shein shares fall 10% amid urgent recall of contact-lens cleaner by Australia, New Zealand

JUST IN: Shein shares fall as much as 10% in Hong Kong after Australia and New Zealand issue an urgent recall of a contact-lens cleaner over bacterial contamination fears.

Shein just lost ten percent of its value over contact lens cleaner.

Shares in the fast-fashion giant fell as much as ten percent in Hong Kong this morning, after Australia and New Zealand issued an urgent recall of one of its contact lens products. A sample tested positive for Burkholderia cepacia, a bacterial contaminant found in the solution the lenses were packaged in. Regulators say exposure risks eye infection, and one user in the UK has already reported one.

The timing could hardly be worse. Shein only listed in Hong Kong earlier this month, and that debut was already shaky. The stock closed down nine and a half percent at 36 Hong Kong dollars and 26 cents. Analysts were already saying the company needs a value proposition beyond cheap and fast, and a better image with regulators.

A recall over bacteria in your eyes, two weeks after your IPO. That is not the image anyone had in mind.

This is Sara White, reporting for HIT.