(Nov 27): Pop Mart International Group Ltd shares jumped the most in three months, leading a broad rally in China’s consumer stocks after Beijing announced new measures to boost spending.
The Labubu maker’s stock climbed as much as 10% after China unveiled plans to better “align” supply and demand for consumer goods, including collectible toys, to spur economic growth. Peers like Bloks Group Ltd and Miniso Group Holding Ltd rose more than 4%.
“The positive rhetoric of the government helped lift the overall sentiment on consumption,” said Jeff Zhang, an analyst at Morningstar Inc, adding that Pop Mart’s products for Thanksgiving and Christmas should be well received by global fans.
Pop Mart’s gains have defied a broader economic malaise in China’s economy, driven by a craze for its Labubu dolls that powered the stock to become one of Hong Kong’s top performers in recent years. Analysts, though, are starting to question whether the rally has gone too far, with short interest rising to the highest level in more than two years, according to S&P Global data.
Other stock gainers on Thursday included cosmetics brand Mao Geping Cosmetics Co and jewellery maker Laopu Gold Co, both of which are in sectors highlighted in China’s consumption plan.
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