2 days ago
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
