By Megan Cheah
Pop Mart International shares rose sharply Friday after the company's chief executive unveiled overseas expansion plans at a state-organized event, indicating China's support for the Labubu maker.
The stock gained as much as 12% to 181 Hong Kong dollars, equivalent to US$23.10, before paring gains to trade 8.9% higher. The advance followed a 4.7% gain on Thursday.
Pop Mart's CEO and founder Wang Ning on Thursday attended a press conference organized by China's State Council Information Office, where representatives from various sectors discussed insights related to China's 15th Five-Year Plan.
During the event, Wang said he supported efforts to develop the cultural industry and expand the international presence of Chinese brands. He also showcased a soon-to-be-launched Twinkle Twinkle doll, a toy series gaining traction following the success of Labubu.
Separately, filings with the Hong Kong stock exchange showed that investor Duan Yong Ping, at times referred to as "China's Warren Buffett," increased his stake in Pop Mart to 5.69% earlier this week, filings to the Hong Kong stock exchange showed.
The billionaire and his private investment vehicle, H&H International Investment, became the toymaker's second-largest shareholder following the purchase.
Pop Mart's shares also rose in early May after Duan disclosed that he had exchanged his holdings in China Shenhua for shares in the company.
The company's latest business update pointed to softer growth in overseas markets. However, analysts at Citi said they continue to see long-term growth opportunities for the company.
The analysts said Pop Mart's ability to develop and monetize intellectual-property franchises remains a key driver of growth. Its efficient retail capability in China has also boosted the segment to outperform, despite the fading popularity of Labubus, they added.
--Sherry Qin contributed to this report
Write to Megan Cheah at megan.cheah@wsj.com
(END) Dow Jones Newswires
May 29, 2026 02:21 ET (06:21 GMT)
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