As Labubu hype starts to fade, Pop Mart value falls by €11bn

Chinese toymaker’s stock slumped nearly 9% after JPMorgan Chase downgraded the firm

Pop Mart’s stock too is witnessing a sharp draw-down, having lost almost €13bn (€11bn) — or roughly a quarter of its value — since reaching a record on August 26. Picture: Pop Mart

The cooling frenzy over Labubu dolls has brought one of the world’s biggest stock rallies to a halt, erasing billions of dollars from the value of Pop Mart International Group Ltd.

The Chinese toymaker’s stock slumped nearly 9% in Hong Kong, the most since April, after JPMorgan Chase & Co. downgraded the firm due to weak catalysts and an unattractive valuation. Despite the slide, Pop Mart is still up more than 180% year-to-date and remains the top performer on the Hang Seng Index.