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📉 Labubu in trouble: China targets Pop Mart and investors panic-sell

Pop Mart shares dropped 6.2% after People’s Daily, the Chinese Communist Party's mouthpiece, dropped a “friendly reminder”: blind box toys might need tighter regulation to “protect the kids.” Translation? 🚨 Regulatory crackdown incoming.

🧸 These mystery box toys — like the viral Labubu — are seen as borderline gambling for minors. Even without direct policy changes, the hint alone made the market twitch.

🧠 Analysts say the hype might be overblown — most customers are adults and global sales are booming. Still, when Beijing coughs, stocks catch a cold. Even Morgan Stanley's juicy HK$302 price target comes with a quiet “but careful now.”

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