On June 22, Pop Mart fell 3.04% in regular trading, trading at 161.9 HKD/share, with turnover of 11.12 billion HKD. The decline came as Deutsche Bank's sell rating and deteriorating domestic sales data continued to weigh on sentiment.

Deutsche Bank maintained a sell rating on the stock with a target price of 140 HKD, citing that Pop Mart's May China online sales recorded its first year-over-year decline in nearly two years, with a 14% month-over-month drop. The bank noted May performance was 25% below the average monthly sales in H2 of the prior year, and projected that both domestic and overseas markets would enter a more pronounced downcycle in H2. The aggressive new product launches in Q2 — including Molly 20th Anniversary, Twinkle Twinkle, and Crybaby series — were identified as diluting scarcity value and accelerating consumer fatigue.

Meanwhile, secondary market prices for the flagship Labubu IP continued collapsing, with hidden editions falling from a peak of over 4,500 yuan to approximately 600 yuan, an 86% decline. Some regular editions have even dropped below official retail prices, signaling a fundamental erosion of the speculative premium that previously supported demand. Morgan Stanley had also previously cut its target price from 278 HKD to 247 HKD, reducing overseas sales forecasts by 18%-19%.

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