Pop Mart Shares Slump After Beijing Called For Stricter Guidelines On 'Mystery Boxes'

Bamboo Works
Shares of Pop Mart International Group Ltd extended their decline on June 20, hit by renewed regulatory concerns after China's top state newspaper called for tighter rules on the booming 'blind box' industry, Bloomberg reported.
The Hong Kong-listed toy company dropped as much as 6.2% in morning trade, following a 5.3% fall on June 19. Shares of Bloks Group Ltd, another player in the surprise-toy segment, tumbled up to 7.1%.
The sell-off came after People's Daily , the official mouthpiece of the Chinese Communist Party, published a commentary urging regulators to 'refine and strengthen' oversight of blind box and blind card sales. The piece warned that the business model may encourage impulsive spending, especially among minors, and called for measures to curb potential addiction risks.
Blind boxes, sealed packages containing unknown collectable items, have exploded in popularity across China, particularly among younger consumers. Pop Mart, one of the sector's leading names, has built a multimillion-dollar business on the back of the trend, fuelled by limited-edition releases and a strong retail presence.
But the rising scrutiny signals a shifting regulatory landscape. Beijing has increasingly cracked down on business practices seen as exploitative or harmful to social well-being, particularly those that could affect children.
Pop Mart has yet to comment on the report. The company's next earnings announcement is expected later this quarter. Related

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Malaysian Reserve

20 hours ago

• Malaysian Reserve

China's Baidu eyes robotaxi expansion to Singapore and Malaysia

BAIDU Inc. is planning to launch its Apollo Go robotaxi service in Singapore and Malaysia as early as this year, according to a person familiar with the matter, as the company continues to expand its global footprint. Apollo Go is in discussions with potential partners to explore the right business models for the two markets, said the person, who asked not to be identified discussing private matters. Baidu Chief Executive Officer Robin Li has previously said the company was seeking partners such as mobility service providers, local taxi companies and third-party fleet operators for an asset-light approach. The development comes as Tesla Inc. prepares to launch its Cybercab robotaxi network within days, with Elon Musk staking the electric car maker's future growth on autonomous driving technology. At the same time, Chinese robotaxi companies including Apollo Go, and US-listed Weride Inc. and Pony AI Inc. are expanding into international markets such as the Middle East, Europe and Southeast Asia. Baidu didn't immediately respond to a request for comment. Dow Jones Newswires reported the plans earlier. Apollo Go is fast scaling up. It has deployed than 1,000 self-driving vehicles worldwide, most of which are in China. It reached 11 million rides by the first quarter of this year, surpassing Alphabet Inc.'s autonomous driving unit Waymo's 10 million paid rides as of May 23. The Baidu unit is also exploring entering Europe and Turkey, and was in talks with Swiss Post unit PostAuto to roll out a robotaxi service in Switzerland. –BLOOMBERG

Malay Mail

a day ago

• Malay Mail

Labubu maker Pop Mart's shares slide after China state media calls for stricter oversight of blind-box craze

HONG KONG, June 20 — Shares in Pop Mart International Group tumbled in Hong Kong trading after a Chinese state media commentary reignited regulatory concerns over the booming blind-box toy sector, triggering a sell-off in the toymaker's stock and related counters. The Beijing-based company, famed for its wildly popular Labubu dolls, saw its shares drop as much as 6.6 per cent yesterday, adding to a 5.3 per cent slide the day before. The losses came after People's Daily, the official newspaper of the Chinese Communist Party, ran a commentary urging tighter regulation of 'blind cards' and 'mystery boxes'. While the article did not name Pop Mart directly, it highlighted concerns that such products could lead to addictive buying behaviour among minors. 'China should further refine regulations for 'blind cards' and 'mystery boxes' as some of the current business models easily induce minors to become addicted to purchasing these products,' the commentary said, citing legal experts. The remarks rattled investor confidence, putting the brakes — at least temporarily — on what has been one of the most dazzling rallies among Chinese consumer stocks this year. Pop Mart shares have still surged nearly 170 per cent in 2025, fuelled by a global pop-culture frenzy over its stylised vinyl figurines. 'The commentary has weighed on investor sentiment, flashing some overheating signs in the business,' said Steven Leung, executive director at UOB Kay Hian Hong Kong, to Bloomberg. 'Still, it's a mild reminder as it didn't come directly from a government official.' Pop Mart, valued at around US$40 billion (RM170.2 billion), sells many of its figurines in opaque packaging, with buyers only discovering which character they've purchased after opening the box. Prices start at about 69 yuan, but limited editions can fetch eye-watering sums. Last week, a human-sized Labubu figure sold at auction in Beijing for 1.08 million yuan, underscoring the dolls' transformation from novelty items to sought-after collectibles. According to Bloomberg, the broader sector also took a hit, with shares of rival Bloks Group down as much as 9.3 per cent. Meanwhile, trading card maker Kayou — which shelved its IPO in 2024 following similar scrutiny — has only recently revived its listing plans. The regulatory overhang is not new. In 2023, China banned the sale of blind boxes to children under eight, citing addiction risks. Such concerns have remained a recurring theme in investor discussions around the sector. Still, analysts told Bloombeg they remain largely bullish. Pop Mart remains the top performer on the MSCI China Index this year, buoyed by growing international appeal. Celebrities such as Rihanna and Blackpink's Lisa have been seen with the toys, lending the brand street cred abroad. Wall Street has responded by raising price targets, pointing to the expanding influence of Pop Mart's intellectual properties. Despite the recent sell-off, some investors remain optimistic that Beijing will tread carefully, mindful of the brand's global success. Policymakers have previously expressed support for homegrown consumer brands making a global splash — a category Pop Mart now firmly belongs to.

The Star

a day ago

• The Star

China's Baidu eyes Robotaxi expansion to Singapore and Malaysia

A file photo of a driverless car by Apollo Go, Baidu's robotaxi service, driving past another Apollo Go robotaxi parked on the side of a road, in Wuhan, China. — Reuters Baidu Inc. is planning to launch its Apollo Go robotaxi service in Singapore and Malaysia as early as this year, according to a person familiar with the matter, as the company continues to expand its global footprint. Apollo Go is in discussions with potential partners to explore the right business models for the two markets, said the person, who asked not to be identified discussing private matters. Baidu Chief Executive Officer Robin Li has previously said the company was seeking partners such as mobility service providers, local taxi companies and third-party fleet operators for an asset-light approach. The development comes as Tesla Inc. prepares to launch its Cybercab robotaxi network within days, with Elon Musk staking the electric car maker's future growth on autonomous driving technology. At the same time, Chinese robotaxi companies including Apollo Go, and US-listed Weride Inc. and Pony AI Inc. are expanding into international markets such as the Middle East, Europe and Southeast Asia. Baidu didn't immediately respond to a request for comment. Dow Jones Newswires reported the plans earlier. Apollo Go is fast scaling up. It has deployed than 1,000 self-driving vehicles worldwide, most of which are in China. It reached 11 million rides by the first quarter of this year, surpassing Alphabet Inc.'s autonomous driving unit Waymo's 10 million paid rides as of May 23. The Baidu unit is also exploring entering Europe and Turkey, and was in talks with Swiss Post unit PostAuto to roll out a robotaxi service in Switzerland. - Bloomberg