Latest news with #MSCIChinaIndex
West Australian
5 hours ago
- Business
- West Australian
Fears of Labubu crackdown in China sink Popmart shares
Pop Mart shares dropped in Hong Kong after a Chinese state media commentary called for stricter regulation of blind-box toys and trading cards, stoking concern over the company's wildly popular Labubu dolls. While the commentary didn't call out Pop Mart by name, it spooked traders who have propelled the company's stock to a nearly 170 per cent gain this year amid the craze for its toothy monster dolls. Pop Mart often sells its dolls inside a blind box, which means the buyer doesn't know what specific character is inside until they open it. Shares of the Beijing-based toymaker, which has a market value of about $US40 billion ($61.7b), dropped as much as 6.6 per cent after tumbling 5.3 per cent on Thursday. China should further refine regulations for 'blind cards' and 'mystery boxes' as some of the current business models induce minors to become addicted to purchasing these products, according to a feature story carried on the 19th page of the People's Daily, the flagship newspaper of the Chinese Communist Party, citing legal experts. 'The commentary has weighed on investor sentiment, flashing some overheating signs in its business,' said Steven Leung, an executive director at UOB Kay Hian Hong Kong, referring to Pop Mart. 'Still, it's a mild reminder as it didn't come directly from a government official.' In China, the government prohibits sales of blind boxes to children under the age of eight due to concern over potential addiction. Before the authorities imposed such guidelines in 2023, regulatory risk was a key concern among investors. But even with the slump this week, Pop Mart shares are still the best performers in the MSCI China Index, as consumer fervour for its toys has turned it into one of the hottest Chinese growth companies. Wall Street analysts have been increasing their price targets for the company, citing the growing influence of its intellectual property. Celebrities including Rihanna and BlackPink's Lisa have been spotted carrying Pop Mart's toys, making it one of China's most notable consumer brands to gain popularity globally. Policymakers in Beijing have sought to encourage such success stories, which may temper expectations for a more disruptive crackdown. 'We believe the government remains supportive of China's IP development, but wants to protect minors and iron out irregularities,' Jefferies analysts including Anne Ling wrote in a note. 'In the short term, there will be pressure on share prices for the entire pop toy segment, especially those that have outperformed year-to-date.' Kayou, a Chinese maker of trading cards, pushed back its plan for an initial public offering in Hong Kong last year after negative publicity surrounding the industry from Chinese state media. It refiled for the listing in April.
Business Times
8 hours ago
- Business
- Business Times
China's warning on blind-box toys sends Pop Mart shares tumbling
POP Mart International Group shares slid in Hong Kong after a Chinese state media commentary called for stricter regulation of businesses offering 'blind cards' and 'mystery boxes'. Shares of the Beijing-based toymaker dropped as much as 6.2 per cent, after having tumbled 5.3 per cent on Thursday; shares in Bloks Group, which sells similar products, fell as much as 7.1 per cent. People's Daily, the flagship newspaper of the Chinese Communist Party, citing legal experts, said in a commentary that Beijing ought to further refine regulations for 'blind cards' and 'mystery boxes', given that these current business models encourage minors to become addicted to purchasing these products. 'The commentary has weighed on investor sentiment, flashing some overheating signs in its business,' said Steven Leung, an executive director at UOB Kay Hian Hong Kong. 'Still, it's a mild reminder as it didn't come directly from a government official.' Even with the slump this week, Pop Mart has still gained about 170 per cent this year, making it the best performer in the MSCI China Index, as consumer fervour for its toys has turned it into one of the hottest Chinese growth companies. Wall Street analysts have been increasing their price targets for the company, citing the growing influence of its intellectual properties. In China, the government prohibits sales of blind boxes to children under eight due to concern over potential addiction. Before the authorities imposed such guidelines in 2023, regulatory risk was a key concern among investors. BLOOMBERG
Business Times
9 hours ago
- Business
- Business Times
China warning on blind-box toys sends Pop Mart shares tumbling
POP Mart International Group shares slid in Hong Kong after a Chinese state media commentary called for stricter regulation of businesses offering 'blind cards' and 'mystery boxes.' Shares of the Beijing-based toymaker dropped as much as 6.2 per cent, after tumbling 5.3 per cent on Thursday. Shares in Bloks Group, which sells similar products, fell as much as 7.1 per cent. 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, according to a feature story carried on the 19th page of the People's Daily, the flagship newspaper of the Chinese Communist Party, citing legal experts. 'The commentary has weighed on investor sentiment, flashing some overheating signs in its business,' said Steven Leung, an executive director at UOB Kay Hian Hong Kong. 'Still, it's a mild reminder as it didn't come directly from a government official.' Even with the slump this week, Pop Mart has still gained about 170 per cent this year, making it the best performer in the MSCI China Index, as consumer fervor for its toys has turned it into one of the hottest Chinese growth companies. Wall Street analysts have been increasing their price targets for the company, citing the growing influence of its intellectual properties. In China, the government prohibits sales of blind boxes to children under the age of eight due to concern over potential addiction. Before the authorities imposed such guidelines in 2023, regulatory risk was a key concern among investors. BLOOMBERG
Mint
9 hours ago
- Business
- Mint
China Warning on Blind-Box Toys Sends Pop Mart Shares Tumbling
Pop Mart International Group Ltd. shares slid in Hong Kong after a Chinese state media commentary called for stricter regulation of businesses offering 'blind cards' and 'mystery boxes.' Shares of the Beijing-based toymaker dropped as much as 6.2%, after tumbling 5.3% on Thursday. Shares in Bloks Group Ltd., which sells similar products, fell as much as 7.1%. 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, according to a feature story carried on the 19th page of the People's Daily, the flagship newspaper of the Chinese Communist Party, citing legal experts. 'The commentary has weighed on investor sentiment, flashing some overheating signs in its business,' said Steven Leung, an executive director at UOB Kay Hian Hong Kong Ltd. 'Still, it's a mild reminder as it didn't come directly from a government official.' Even with the slump this week, Pop Mart has still gained about 170% this year, making it the best performer in the MSCI China Index, as consumer fervor for its toys has turned it into one of the hottest Chinese growth companies. Wall Street analysts have been increasing their price targets for the company, citing the growing influence of its intellectual properties. In China, the government prohibits sales of blind boxes to children under the age of eight due to concern over potential addiction. Before the authorities imposed such guidelines in 2023, regulatory risk was a key concern among investors. This article was generated from an automated news agency feed without modifications to text.
Malaysian Reserve
13-06-2025
- Business
- Malaysian Reserve
Pop Mart's 200% stock rally spurs rush to hike price targets
WALL Street analysts are rushing to raise price targets on Pop Mart International Group Ltd. following the success of its Labubu dolls. At least five brokerages, including Deutsche Bank AG and Morgan Stanley, have lifted projections on the Hong Kong-listed stock this week. Citigroup Inc. hiked its price target by 90% to a street high of HK$308 apiece, citing the growing influence of the company's intellectual properties globally. Pop Mart shares rose as much as 3.5% on Friday, extending their year-to-date climb to around 200%, before erasing those gains midday. Earlier this week, the stock touched a fresh record high. The growing popularity of Pop Mart's toothy monster dolls is boosting sales prospects for the firm. THE MONSTERS blind-box series, with Labubu at its center, generated more than 3 billion yuan in sales for Pop Mart last year, accounting for almost one-fourth of the company's revenue. Pop Mart is trading above the 12-month average analyst price target tracked by Bloomberg and the rally has pushed shares to overbought territory. While valuations at 45 times forward earnings have topped that for peers like Sanrio Co. and Walt Disney Co., some analysts are optimistic that shares can continue to rise after tripling so far this year. The stock is the best performer on the MSCI China Index this year after making it among the biggest gainers on the gauge in 2024. –BLOOMBERG
