Core Viewpoint - The significant increase in short-selling data for Pop Mart and Blok is contrasted with their high market valuations and strong performance, indicating potential concerns about future growth and sustainability in the new consumption sector [1][3][9]. Group 1: Short-Selling Trends - Pop Mart's short-selling shares rose from 563,600 in early May to 1,707,000 by June 11, an increase of over 200% [1]. - Blok's short-selling shares increased from 71,400 on May 16 to 256,800 on June 11, marking a 260% rise [3]. - In contrast, other companies in the new consumption sector, such as Guming and Maogeping, experienced a decline in short-selling volumes [5]. Group 2: Performance and Valuation Concerns - Despite strong performance, the stock price increases for Pop Mart and Blok have potentially overstretched future growth expectations [9]. - The Labubu series from Pop Mart has a secondary market premium exceeding 10 times, raising concerns about valuation fragility [9]. Group 3: IP Dependency Risks - Blok relies on the Ultraman IP for 48.9% of its revenue, with the copyright expiring in 2027, leading to uncertainties regarding renewal costs and alternative IPs [9]. - Pop Mart's Labubu series contributes 23.3% of its revenue, with projected income of 3.04 billion in 2024, but faces challenges in managing the IP lifecycle [9]. Group 4: Market Sentiment and Consumer Behavior - On June 9, the day Blok was included in the Hong Kong Stock Connect, short-selling volume surged by 459%, indicating potential short-term arbitrage opportunities [9]. - Research shows that about 30% of blind box consumers are reducing purchases due to waning novelty, raising concerns about the sustainability of emotional consumption among Generation Z [9].