Hong Kong's consumer sector is facing a bitter winter. On December 9, the market-dubbed "consumer trio"—Pop Mart (09992.HK), Laopu Gold (06181.HK), and Mixue Group—extended their declines, dropping 5.04%, 2.93%, and 0.45%, respectively. Combined with the previous day's losses of 8.49%, 6.72%, and 3.02%, the three companies saw over HKD 80 billion in market value evaporate in just two days.
Pop Mart has fallen 44% from its all-time high of HKD 339.8, Laopu Gold has retreated 44.1% from its peak of HKD 1,097.48, and Mixue Group has slid 35.88% from its high of HKD 618.5. Collectively, the three firms have lost more than HKD 360 billion in market capitalization.
The steep declines reflect institutional caution toward the new consumer sector. Morgan Stanley's latest report notes that Pop Mart is transitioning from "explosive growth" to "sustainable growth," with its core IP Labubu facing waning popularity. Data shows that the premium for Labubu's hidden edition has shrunk by over 50%, with some standard editions trading below retail prices in the secondary market. Deutsche Bank warns that without a new hit IP by 2026, Pop Mart's China revenue could drop by 20%.
Laopu Gold's slump defies industry trends. Despite gold prices hitting record highs in 2025—with COMEX gold surpassing $4,300 per ounce—gold jewelry stocks are undergoing valuation adjustments. The World Gold Council reports central banks bought a net 634 tons of gold in the first three quarters, yet risk appetite for gold equities has weakened. Analysts attribute this to high prices dampening retail demand, pressuring Laopu Gold's premium positioning.
Mixue Group's pullback highlights intensifying competition in the tea beverage sector. Though the company hasn’t disclosed recent earnings, concerns linger over rising material costs and profit pressures from rapid store expansion. Huatai Securities noted on December 4 that the consumer sector shows a "new-old divergence," warning of valuation bubbles in ready-to-drink segments.
Market sentiment reveals clear capital flight. Wind data shows Pop Mart's short-selling volume surged 210.58% to HKD 1.092 billion on December 8, with the short ratio climbing to 19.23%. Hong Kong's consumer index has plunged 12% over the past month, marking its worst monthly drop since 2023.
Long-term, most brokerages recommend focusing on four key themes, including domestic brand growth and AI integration, believing quality new-consumer leaders still offer structural opportunities. However, rebuilding investor confidence in the "consumer trio" will likely require stronger earnings visibility amid current market conditions.
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