In recent news from Epoch Times on September 10, 2025, the stock price of China’s trendy toy company, Bubble Mart, recently plummeted, dropping below 300 Hong Kong dollars. Labubu, a hidden line of toys that were once in high demand and were even traded for over ten thousand dollars, is now struggling to find buyers – “there are simply no takers,” as scalpers have suspended their purchases. The bubble in the trendy toy market is silently bursting.
Labubu, once a sought-after item that was hard to come by, is now seeing a decline in prices on various second-hand platforms.
On some second-hand platforms, certain hidden items were once traded for over ten thousand dollars, such as the “Ego” hidden piece. On September 10, the resale price of this “Ego” hidden piece dropped from a high of around 4,356 dollars to 834 dollars on the Xianyu app over the past 90 days.
As a result, after reaching a historical high of 339.8 Hong Kong dollars per share on August 26, the stock price of Bubble Mart has been on a continuous downward trend.
On September 8, the stock price of Bubble Mart fell by 8.85% at one point during trading hours, closing at 287.6 Hong Kong dollars per share. It dropped by 7.11% within the day, resulting in a loss of market value equivalent to 29.545 billion Hong Kong dollars compared to the previous trading day.
On September 10, the stock price of Bubble Mart fell by 6.66% to 269 Hong Kong dollars per share, with a total market value of approximately 361.2 billion Hong Kong dollars.
Behind the fluctuation of Bubble Mart’s stock price lies the “avalanche” of prices for its popular Labubu series in the secondary market. The official Bubble Mart response has been to remain silent on the price fluctuations.
Data shows that the newly released mini Labubu series on August 28 saw hidden items being traded for nearly a thousand dollars on the night of release, with the resale price of a set ranging between 1,500 and 3,200 dollars. However, the hype only lasted for a week before prices began to decline consistently.
According to data from the trendy toy trading platform, shortly after the release, the resale price of the fourth-generation Labubu set had dropped to between 1,400 and 1,850 dollars, with some less popular styles falling below the official price of 79 dollars.
This price “avalanche” has also spread to the older series, with the resale price of the third-generation Labubu set dropping from a high of 1,380 dollars in June of this year to the current range of 600 to 700 dollars.
Mainland media outlets like Cover News reported, “On the night of the release, I managed to grab two sets on the platform and resold them for 2,800 dollars per set.” Beijing player Xiaolin recalled, “I thought I had made a profit at the time. I never expected prices to drop so significantly now.”
Scalpers revealed that the once highly traded Labubu hidden pieces, like the “Ego” hidden piece, can now be broken up for as little as 840 dollars at most.
The drastic price fluctuations have led some scalpers to announce on forums that they are “suspending purchases” and waiting for the market to recover. Speculators who had invested tens of thousands of dollars in stockpiling goods are facing pressure due to losses.
Data from the Xianyu platform shows that the average transaction price of Labubu over the past seven days is 105 dollars, a decrease of 5 dollars from the previous week. 67% of users believe that prices will continue to fall, while 33% hold the opposite view.
Faced with such dramatic price fluctuations, scalpers have begun to adopt a more conservative strategy. On social platforms, some have posted, “Suspending purchases of the Labubu series; prices plunging across the board.”
Professional scalper Ms. Yu disclosed, “I’ve been in the trendy toy resale business for two years, and Labubu has always been a hot commodity. But the market reaction this time is completely unexpected. I still have three sets on hand that I haven’t sold, and I estimate I’ll lose several thousand dollars.”
On second-hand trading platforms, the number of Labubu listings has significantly increased, but the volume of transactions has declined. Sellers have been reducing prices for promotional purposes, with some even labeling their listings as “selling at a loss” or “desperately seeking recovery.” “Now it’s not a question of whether or not to buy, but rather there are simply no takers,” said another scalper, Ms. Wang, “There’s suddenly a large amount of Labubu on the market, but buyers are waiting for prices to continue to drop.”
Insiders have revealed that Bubble Mart is adjusting its product strategy and may control production volumes while increasing product diversity.
Morgan Stanley, in a recent research report, stated that although the second-hand market price is the only high-frequency data easily trackable in the market, it may be “misleading.”
Morgan Stanley said that the second-hand market accounts for only a small portion of the total supply and demand. More importantly, Bubble Mart has been actively increasing its supply capacity and cracking down on scalpers, which in itself will compress the premium space of the second-hand market.
The report also mentioned that this is the third time the market has been concerned about Labubu’s second-hand prices, indicating that this may be a recurring case of excessive reactions.
Morgan Stanley noted in the report that Bubble Mart’s inclusion in the Hang Seng Index triggered a large-scale short-covering. Data shows that on the Friday of the previous week, 6.3 million shares were sold short, accounting for 31% of the daily trading volume.