Latest news with #People'sDaily
West Australian
6 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 Insider
7 hours ago
- Entertainment
- Business Insider
Labubu's parent company's stock is down after China issued a warning on a lucrative sales strategy
Labubu's parent company, Pop Mart, saw its stock price slide after China issued a warning on the addictive nature of blind boxes. Pop Mart's stock dropped by more than 5% on Friday and by about 14% in the past five days. The slump comes after People's Daily, a publication run by the Chinese Communist Party, published an article on Thursday warning about the blind box sales strategy, saying its addictive nature can hook children. While the article did not mention Pop Mart specifically, it discussed products like blind trading cards and mystery boxes. China has, since 2023, banned the sale of blind boxes to children under eight years of age. Blind boxes are toys with unlabeled packaging, leaving the contents a mystery to the buyer. This sales strategy spurs consumers to purchase more in the hopes of getting their hands on the toy design they want. Figurines of Pop Mart's most popular product line, The Monsters — known for one of its characters, Labubu — are sold in the blind box format. Pop Mart's blind boxes in The Monsters collection cost between $10 and $20. Ana Gonzales, a 38-year-old social media manager based in the Philippines, previously told BI that she has spent upward of $500 on blind boxes. "Not knowing what color you'll get adds so much excitement," Gonzales said. "Opening a blind box after a long day or tiring week feels like unwrapping a gift to myself or a little reward." Pop Mart isn't the only company selling toys in blind boxes, but the global success of Labubu makes it one of the most visible. While its stock took a hit this week, Pop Mart has seen tremendous success recently, with its stock price increasing by about 500% in the past year. Recently, Pop Mart paused physical sales of The Monsters in South Korea and the UK, citing long queues outside their stores. Labubu dolls have enjoyed celebrity endorsements from major K-pop artists, Rihanna, and Dua Lipa. The trendy toy has also sparked legions of knockoffs, nicknamed " Lafufus" on social media.
Business Recorder
7 hours ago
- Business
- Business Recorder
Hong Kong stocks set for biggest weekly loss since April on trade, Mideast jitters
SHANGHAI: Hong Kong stocks rebounded on Friday after three sessions of losses but remained on track for their biggest weekly loss since April, as Sino-US trade talks and Middle East tensions weighed on investor sentiment. Mainland China shares edged higher. China's blue-chip CSI300 Index climbed 0.2% by the lunch break while the Shanghai Composite Index gained 0.1%. Hong Kong benchmark Hang Seng was up 1.2%. China kept its benchmark lending rates unchanged, after rolling out sweeping monetary easing measures last month to support the economy. Amid uncertainties related to China-US trade friction, onshore share valuations may be range-bound at low levels near term, said UBS strategist Lei Meng in a note. 'We expect limited downside, and potential upside catalysts mainly from stronger policy easing, the continual entry of medium or long-term funds and structural reforms,' Meng said. The CSI Liquor Index rose 2.6%, leading gains onshore. Shares of 'Blind Box' toymaker Pop Mart dropped more than 5% after state media outlet People's Daily called for stricter regulation of the blind box industry, citing expert views. The stock has fallen 13% so far this week, but soared 162% this year. Israel and Iran's air war entered a second week and fears of a potential US attack on Iran hung over markets in Asia, impacting overall risk sentiment. The Hang Seng Index was down 1.6% this week, on track for the largest decline since April 7, if losses hold. The CSI300 Index was down 0.3%.
South China Morning Post
7 hours ago
- Business
- South China Morning Post
Pop Mart's shares get a beating as People's Daily weighs in to rail against ‘blind boxes'
The world's most valuable toymaker is losing some of its appeal after the mouthpiece newspaper of the Communist Party of China poured cold water on its business model and warned against the addictiveness of its wildly popular collectibles. Pop Mart International Group 's shares plunged as much as 6.6 per cent on Friday in Hong Kong after the People's Daily newspaper ran a commentary that railed against the 'wilful consumerism' of so-called blind boxes. The stock has fallen 11 per cent in two days, wiping out HK$36 billion (US$4.58 billion) in market value. The mainstay of Pop Mart's business model is its blind boxes and blind cards, which hide their contents with sealed packaging. That drives collectors into frequent and repeat purchases to get their hands on the rarest and most desired toys or cards, where the chance of finding rare editions has been calculated at less than 2 per cent. These products are 'business traps' designed to use unpredictable rewards to encourage repeat purchases, the People's Daily said, citing legal experts and academics. Minors are especially susceptible given their still-developing self-control and psychological maturity, the newspaper warned, calling for stronger regulations to protect them against these tactics. A girl looked at 'blind boxes' - where their contents are hidden by sealed packaging - at a Pop Mart store in Beijing on June 3 2021. Photo: EPA-EFE With a circulation of 3 million, the People's Daily's editorial stance reflects the thinking of China's policymakers. Chinese authorities issued a directive in 2023 banning the sale of blind boxes to children under eight years old to curb their addiction.
Business Times
9 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
