Pop Mart falls further as punters cash out

Staff reporter

Pop Mart International (9992) further dipped just over 6 percent in Hong Kong yesterday over concerns about the possible decline of Labubu mania.

After skyrocketing over 370 percent last year, the Chinese toymaker saw its shares already fall about 9 percent from December 23-27.

However, Morgan Stanley has said the recent fall was mainly due to falling prices in the secondary market and some investors cashing in their gains.

According to Morgan Stanley, some investors are particularly concerned about the drop in resale prices for Labubu and Coca-Cola crossovers, unlike other Labubu toys that were launched 6-12 months ago.

Despite concerns this is a sign that Labubu is losing popularity, the line is still sold out. In addition, Labubu's speculative price has fallen close to the product's original selling price, which may discourage dealers from stocking up again in the future.

Pop Mart dropped 6.1 percent to HK$88.45.

In other news, Miniso (9896) is reportedly seeking to raise US$550 million (HK$4.28 billion) through the issuance of equity-linked securities that will mature in 2032, according to sales documents cited by foreign media.

The sales documents indicate that the equity-linked securities offer a coupon rate of 0.5 percent to 1 percent, with semi-annual dividends, due in January 2032.

The stock closed at HK$51.05, down 1.92 percent, with a trading volume of about HK$644 million.