Labubu mania appears to be ebbing as quickly as it surged, reports Bloomberg, driving a roughly 40% drop for Pop Mart International since its August peak.

A disappointing US Black Friday and cooling resale demand have revived comparisons to the 1990s’ Beanie Babies bust, challenging the notion that Pop Mart could become China’s answer to Walt Disney or Hello Kitty owner Sanrio.

Pop Mart’s North America revenue growth slowed to 424% in the current quarter to December 6—more than halving from the three months to September—according to YipitData, a New York-based firm that gathers and analyzes alternative data. Bearish wagers against its stock have tripled since November to their highest since August 2023, S&P Global data show.

Shanghai Stock Exchange has overtaken Nasdaq and Hong Kong as the world’s top initial public offering venue in the first half, helped by flotations of leading mainland Chinese companies following their delisting in the US, reports the South China Morning Post.

According to Deloitte, a total of 68 IPOs, including jumbo offerings by China Mobile, the world’s largest mobile operator by subscribers, and CNOOC, China’s largest offshore driller, helped fundraising in Shanghai to reach HK$254.3 billion ($32.4 billion), 49% more than a year ago, when it ranked fourth behind Nasdaq, New York Stock Exchange (NYSE) and Hong Kong.

Together with Jinko Solar, which is still listed on the NYSE but faces a similar delisting risk, Shanghai snapped up three of the world’s top 10 IPOs in the first half.

New listings in China this year have raked in more than double the amount raised on Wall Street, after officials camped out at Shanghai’s stock exchange during the city’s strict lockdown to ensure a steady flow of deals, reports the Financial Times.

Total fundraising from initial public offerings in China has hit almost $35 billion this year, compared with just $16 billion on Wall Street, according to data from Dealogic.

The strong showing for China’s IPO market came as authorities in Shanghai reacted swiftly after the city of 26 million entered a two-month lockdown, dispatching a squad of cadres to safeguard what is one of the most precious resources in China’s financial capital.

China’s state planner said on Thursday it had approved 10 fixed-asset investments worth RMB 121 billion ($18.1 billion) in May, a more than six-fold jump from April, as policymakers seek to get economic growth back on track after a COVID-induced slump, reports Reuters.

Data on Wednesday suggested activity in the world’s second-largest economy is beginning to pick up again in some sectors after widespread COVID-19 lockdowns in April and early May, but the outlook remains uncertain, particularly for cities like Beijing which are still trying to bring caseloads down to zero.

Most private economists believe China’s economy contracted in April-June after growing 4.8% in the first three months. The government has vowed to achieve positive growth in the second quarter.

A $1.3 trillion rebound in Chinese onshore stocks from April’s sell-off is fuelling belief that the market is past its worst slump this year. The next struggle will be overcoming a technical market barrier and pessimism over corporate earnings and the economic outlook, reports the South China Morning Post.

Investors should consider selling into the latest recovery as earnings and valuations come back into focus, Manulife Teda Fund Management said. Local shares could also drift sideways on sluggish economic data, according to HSBC Jintrust Fund Management and China International Fund Management.

The euphoria following the end of citywide lockdown in Shanghai has helped yuan-denominated stocks outpacee returns in markets elsewhere. The Shanghai Composite Index has climbed 14% from the lowest point in April, while the ChiNext gauge of smaller companies in Shenzhen surged 19%. Benchmarks in the US and Asia-Pacific fell by 0.1 to 6.6% over the same period.