On Tuesday, June 17, 2025, the stock price of “China’s leading trendsetter” Bubble Mart (09992.HK) plunged by 6.04%, causing a market value evaporation of about 22.3 billion Hong Kong dollars, attracting market attention. Previously, on June 12, Bubble Mart’s stock price soared to a historic high of 283.4 Hong Kong dollars per share.
By the close of trading on the Hong Kong Stock Exchange, Bubble Mart had fallen by 6.04%, marking its largest single-day decline in June, with a market value evaporation of about 22.3 billion Hong Kong dollars (about 20.4 billion Renminbi), bringing its total market value down to 360 billion Hong Kong dollars.
On that day, the topic labeled “Bubble Mart’s market value evaporates over 20 billion” trended on Weibo.
Netizens commented, “I knew there was a problem with all the hype these past few days,” and “When celebrities come out in droves to promote a product, I feel like there’s something off.”
“Capital pumps up the stock only to cash out, leaving retail investors to suffer,” and “Shareholders have all sold off, entering a free fall mode.” “Honestly, I’m not into stocks, but seeing a toy company with a market value comparable to JD.com with hundreds of thousands of employees, makes this world quite surreal.”
Financial blogger and Weibo influencer “Sailing North” analyzed, “The capital frenzy that began in October 2022 is now facing a critical turning point – from a historic low of 8.654 Hong Kong dollars to a peak of 283.4 Hong Kong dollars, in just two and a half years, Bubble Mart’s stock price skyrocketed over 28 times, far exceeding the valuation logic of traditional consumer stocks.”
“…However, behind the meteoric rise lies the lurking risk of a bubble. Bubble Mart’s dynamic price-to-earnings ratio once exceeded 100 times, while the average valuation of A-share consumer leaders is only around 20 times. More alarming is that the major funds have begun to exit at high levels: early investor Fengqiao Capital has cashed in 2.264 billion Hong Kong dollars, more than 8 times the profit; co-founders Wang Ning and his wife have also reduced their stakes multiple times, cashing out over 3.3 billion Hong Kong dollars. When insiders who know the company best choose to secure profits, the market’s concern about ‘valuation bubble’ is escalating.”
According to “21st Century Business Herald,” in recent times, Bubble Mart has been making frequent moves, accelerating the commercialization of its intellectual property. On June 10, a Labubu mint-colored collectible item sold for a high price of 1.08 million yuan at the Yongle 2025 spring auction, sparking market frenzy. From rampant counterfeits, scalpers rushing to buy, to the new store in Hangzhou selling out, Labubu’s popularity continues to rise.
On June 13, Bubble Mart’s independent jewelry brand POPOP opened its first store in Shanghai’s luxury shopping destination Hongyi Henglong Plaza. On June 14, POPOP’s first store in Beijing at Guomao City welcomed its first customers. On June 16, Uniqlo announced the launch of a new collaborative collection themed around Bubble Mart’s “THE MONSTERS” IP.
The report highlights that behind Bubble Mart’s frenzy, the capital presents a different picture. Since 2024, major shareholders including founder Wang Ning have started intensive selling, especially in May this year when Fengqiao Capital liquidated all its pre-listing shares, triggering a strong market reaction. This capital action sharply contrasts with the company’s high-profile market performance.
According to a report by The Paper, some fund managers have indicated that Bubble Mart’s market value has far exceeded that of established IP companies in Japan, and investors need to conduct careful analysis and research to understand how much further its upward potential can go. Drawing from overseas experiences, the period when Bubble Mart experienced its highest growth rate may have already passed when viewed from the perspective of market share.