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Pop Mart International Group Ltd., the company behind the globally popular Labubu dolls, saw its Hong Kong-listed shares fall sharply on September 8, 2025. The Pop Mart share price dropped nearly 7% after the company joined the Hang Seng Index and Hang Seng China Enterprises Index. Many investors sold their shares to take profits after a big rise in 2025.
Until last year, Labubu dolls had become a global hit. Each doll is wrapped in a box that hides which figure is inside, creating excitement for collectors. However, recently, when Pop Mart launched the smaller versions of the Labubu dolls, they didn’t meet the same excitement.
At resale platforms such as eBay and StockX, the prices for these dolls dropped, with some being sold for 50% less than before.
The decline in Pop Mart stocks indicates that collector enthusiasm is waning. Analysts also point to quality concerns in some new products, which could hurt customer loyalty. Jeff Zhang from Morningstar said Pop Mart must quickly improve product quality to keep its strong fan base.
Joining the Hang Seng Index was expected to bring more investors. Typically, companies listed in major indexes attract investment from funds that track the market. However, in Pop Mart’s case, many current investors sold shares to lock in profits, causing short-term market volatility. Automated trading and adjustments from investment funds added to the selling pressure.
Despite the price fall, Pop Mart remains financially strong. Revenue grew by more than 200% to 13.87 billion Chinese yuan ($1.94 billion) in the first half of 2025. Forecasts show the company could be making north of $4 billion for the whole year. Pop Mart Labubu still holds global attention in collectibles.
The Labubu craze is entering a new stage, as the initial excitement fades away, and collectors are increasingly cautious. According to experts, Pop Mart must keep up the tempo with new, interesting products to retain the interest of its fans. New launches and good marketing will hence be used to revive the hype and to support the corporate value.
With some highs and lows through the past few years, Pop Mart's branding strength and online sales method shall see it through to be a strong competitor in the collectibles market. Investors will be keenly watching to see whether the company can keep collectors interested while continuing to grow.
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