:max_bytes(150000):strip_icc()/GettyImages-2233370481-327c606dd9f347829ee1adadd199f14b.jpg "Is the Labubu Craze Fading? Maker Pop Mart’s Stock Tumbles After HK Index Entry")
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KEY TAKEAWAYS
- Shares in the Labubu doll maker Pop Mart International Group Ltd. tumbled in Hong Kong amid profit-taking after the company was added to the benchmark index and amid concerns that Pop Mart may not be able to keep rolling out hip collectible toys.
- Pop Mart became a member of Hong Kong’s benchmark Hang Seng Index and the Hang Seng China Enterprises Index on Monday.
- The Labubu dolls, which come in boxes that hide the contents until they’re opened, have sparked a global collectibles craze.
Is the Labubu craze starting to fade?
Shares in the Labubu doll maker Pop Mart International Group Ltd. tumbled in Hong Kong as some investors sold the high-flying stock following the company’s entry into a benchmark index and as concerns mount over Pop Mart’s ability to keep rolling out hip collectible toys.
Pop Mart on Monday became a member of the benchmark Hang Seng Index, as well as the Hang Seng China Enterprises Index, which tracks Chinese companies listed in the city. Pop Mart’s shares have more than tripled this year and Monday closed 7% down in Hong Kong trading.
The Labubu dolls, which come in boxes that hide the contents until they’re opened, have sparked a global collectibles craze, with the company recently launching mini versions. Consumers have resorted to secondary marketplaces such as eBay and StockX to purchase these undersupplied sharp-toothed monster dolls, frequently at inflated prices.
Their popularity has boosted the fortunes of Chinese retail chain Pop Mart which posted a 200% surge in its first-half revenue at 13.87 billion Chinese yuan ($1.94 billion). The shares were listed in Hong Kong at the end of 2020.
