Core Viewpoint - Pop Mart, once highly favored by the market, is currently facing a wave of short selling, with its stock price dropping significantly from its peak earlier this year [2][9]. Group 1: Stock Performance - As of today, Pop Mart's stock price is HKD 200.4, down 8.49% from the previous trading day, resulting in a market capitalization of HKD 269.1 billion [2][9]. - The stock reached a peak price of HKD 339.8 in August, indicating a decline of 41% from its highest point, with a market value loss of HKD 187 billion [2][9]. Group 2: Reasons for Decline - Morgan Stanley has revised its revenue growth forecast for Pop Mart for 2026 from 30% to 18%, citing a near 35% penetration rate in the Chinese blind box market, which, along with intensified competition, is expected to suppress growth [3][10]. - The core IP "Labubu" has lost its scarcity, as the company increased its monthly production from 10 million to 50 million units, leading to a rapid decline in secondary market premiums [3][10]. - Concerns about a slowdown in overseas sales growth are emerging, with a projected decline in U.S. sales growth from 1,200% to below 500% during the Black Friday period [10][11]. Group 3: Institutional Actions and Market Sentiment - Institutional investors have lowered their valuations, with Morgan Stanley reducing its target price from HKD 382 to HKD 325, and Deutsche Bank setting a "hold" target price of HKD 228 [4][13]. - Since December 2, short selling in Hong Kong stocks has surged by 158%, with the short selling volume reaching 6.3% of the float, the highest level since August 2023 [4][13]. - Market sentiment has been affected by profit-taking, as the stock has corrected approximately 40% since its peak in late August, leading to a sell-off as investors seek to realize gains amid uncertainties regarding the transition from a single IP to multiple IPs [5][13]. Group 4: Executive Selling - Despite the significant drop in stock price, Pop Mart's executives and early shareholders are entering a period of intensive selling, with total cashing out exceeding HKD 6 billion [6][14]. - The founder and chairman, Wang Ning, plans to sell 21.7 million shares at HKD 71.98 each, cashing out approximately HKD 1.56 billion, reducing his stake from 50.34% to 48.73% [6][14]. - Other executives have also sold shares, with the COO cashing out HKD 151 million and the overseas business head cashing out HKD 89.97 million [6][14].