Shares of the Beijing-based toymaker, which has a market value of about US$40 billion ($51.37 billion), dropped as much as 6.6% after tumbling 5.3% on Thursday. Bloks Group Ltd., which sells similar products, fell as much as 9.3%.
Pop Mart International Group Ltd. 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 business.
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% 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.
