POP MART's stock soared 5.12% during intraday trading on Friday, driven by a high-profile investor move and technical market conditions.

Prominent investor Duan Yongping publicly disclosed he had sold his entire position in China Shenhua Energy and rotated the proceeds into POP MART, providing a significant bullish endorsement. Concurrently, market data indicated outstanding short positions accounted for approximately 42.8% of POP MART's free float, with stock borrowing rates climbing to around 8%, creating conditions ripe for a potential short squeeze as bears face increasing pressure.

The surge occurs despite recent analyst concerns about softening demand for the company's collectible toy franchises. Deutsche Bank recently maintained a sell rating on the stock, citing weakening demand in China and slowing overseas sales, which may have contributed to the elevated short interest.