OREANDA-NEWS  Shares of Chinese soft toy manufacturer Pop Mart, known for its Labubu dolls, fell by 6 percent on the Hong Kong Stock Exchange. Bloomberg writes about this, clarifying that the shares collapsed amid a weakening of investor confidence, which occurred after a drop in toy purchases by resellers (resellers).

The cost of dolls produced by Pop Mart has fallen in the secondary market due to deteriorating demand, the publication says. Following the results of trading in Hong Kong on Tuesday, December 30, the drop was 4.6 percent. During the day, toy prices decreased by 6.2 percent, which was the lowest in the last three weeks.

Investors, apparently, expected more intense demand for the Chinese company's products in the midst of the New Year holidays. The fact that sales abroad were not too high made them question the brand's sustainability. Relative to the August high, the value of the producer's shares decreased by 44 percent.

In September, analysts also recorded a drop in Pop Mart shares. Morningstar Inc analyst Jeff Zhang attributed these processes to resellers restocking, declining demand for individual series, and an increase in complaints about the quality of new products.