Shares of Pop Mart International, the manufacturer of Labubu toys, fell by 4.6% at the end of trading on the Hong Kong Stock Exchange, according to trading data. At its lowest, the decline reached 6.2%.
For Pop Mart, this is the most significant drop in the last three weeks, and in terms of dynamics, its shares have become the worst in the MSCI Asia Pacific index, Bloomberg reports.
The reason for the decline in stock prices was reports of weakening demand for Labubu, according to Bloomberg. The agency notes that some speculators have stopped purchasing the toys due to price fluctuations in the secondary market in China, indicating a weakening demand. These reports have once again hit investors' confidence in Pop Mart.
Labubu is a toothy monster doll, a character created by Hong Kong designer Lung Kasin: he is the main character of the series, and besides him, there are also Molly and Crybaby. Pop Mart sells these toys in a "blind box" format: the buyer does not know which figure is inside until they open the packaging.
Due to the hype around Labubu, Pop Mart's shares soared more than 100% since the beginning of 2025. However, the drop in toy prices and data indicating weaker-than-expected overseas sales during the holiday season have intensified investors' doubts about the brand's sustainability.
Relative to the peak recorded in August, Pop Mart's shares have fallen by 44%, and its market capitalization has shrunk by more than $25 billion.
