Latest news with #StevenLeung
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
10 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.
Yahoo
25-03-2025
- Business
- Yahoo
Chinese Tech Stocks Near Correction in Sharp Sentiment Reversal
(Bloomberg) -- Chinese technology stocks fell from a three-year high to the brink of a correction in just five sessions, fueled by a lack of positive surprise in earnings and Xiaomi Corp.'s jumbo share sale. They Built a Secret Apartment in a Mall. Now the Mall Is Dying. Why Did the Government Declare War on My Adorable Tiny Truck? Chicago Transit Faces 'Doomsday Scenario,' Regional Agency Says LA Faces $1 Billion Budget Hole, Warns of Thousands of Layoffs Libraries Warn They Could Be 'Cut off at the Knees' by DOGE The Hang Seng Tech Index dropped as much as 4.1% on Tuesday, extending its slide from a March 18 high to more than 9%. Xiaomi, which raised $5.5 billion in an upsized placement, was down as much as 6.6%. Alibaba Group Holding Ltd. fell following its chairman's warning on a potential bubble forming in datacenter construction. A world-beating rally in Chinese tech stocks is rapidly cooling as the initial shock-and-awe from DeepSeek's AI model wanes, with investors demanding more real-life applications before bidding up shares further. While the nation's tech earnings mostly topped estimates or came in line in the just-concluded reporting season, such expectations were already baked in. Earnings have been good so far, but they weren't enough to bring 'positive surprise,' said Steven Leung, an executive director at UOB Kay Hian Hong Kong Ltd. 'Xiaomi's upsized share placement has weighed on market sentiment today with some investors worrying about such offering creating pressure on market liquidity.' Xiaomi's sale follows BYD Co.'s $5.6 billion offering earlier this month. While the funding may benefit the companies over the longer term, shares are under immediate pressure due to increased supply and as they were sold at discount, according to analysts. Tuesday's retreat bucks gains across most of Asia following signals from US President Donald Trump that the sector-specific and reciprocal tariffs expected on April 2 may be less daunting than feared. The Hang Seng China Enterprises Index fell more than 2%. Even with the day's slide, the Hang Seng Tech gauge remains up more than 23% for the year. Investors have rushed to re-evaluate Chinese tech stocks since the rise of DeepSeek earlier this year, with President Xi Jinping's embrace of major business leaders also accelerating stock gains. Any further selloff will worry investors, and may potentially undermine a growing narrative that Chinese markets can become an alternative investment ground as investors reassess US exceptionalism. Alibaba's shares slumped more than 3%. Sunny Optical Technology Group plunged 11% after the company cautioned against a capacity glut. 'Alibaba's caution around a potential bubble in AI data center buildouts has added pressure, hinting that the red-hot AI theme may face a short-term bump,' said Charu Chanana, chief investment strategist at Saxo Markets. --With assistance from Winnie Hsu. The Richest Americans Kept the Economy Booming. What Happens When They Stop Spending? Google Is Searching for an Answer to ChatGPT A New 'China Shock' Is Destroying Jobs Around the World How TD Became America's Most Convenient Bank for Money Launderers Tesla's Gamble on MAGA Customers Won't Work ©2025 Bloomberg L.P. Sign in to access your portfolio
