Wang Ning's $6 Billion Wealth Evaporation: What Triggered Pop Mart's Market Crisis?

In less than a month, Wang Ning watched his fortune shrink by nearly $6 billion. The Pop Mart founder’s net worth now stands at $21.6 billion, a dramatic reversal from the $27.5 billion fortune he possessed in late August. This sudden wealth erosion sent Wang Ning tumbling from China’s richest individuals—once surpassing Jack Ma—down to 14th place on the country’s billionaire rankings.

The Labubu 4.0 Disaster: When Supply Overwhelms Demand

The culprit behind Wang Ning’s financial setback is surprisingly straightforward: the latest Labubu 4.0 series has failed to capture market enthusiasm. Released on August 28 at 79 yuan ($11) per unit, the 28-piece collection of smaller rabbit-like plush toys was meant to sustain the toy manufacturer’s explosive growth trajectory. Instead, it sparked investor panic.

The secondary market tells a telling story. On resale platforms like Dewu, where wealthy collectors typically flip limited-edition collectibles at premiums, the newest Labubu models have experienced a 14.3% price collapse to just 150 yuan each. This markdown signals a fundamental shift: scarcity is disappearing, and with it, collector demand.

Pop Mart attributed the price decline to increased production, framing it as a positive move to meet consumer demand. However, the market interpreted this differently—as a sign that the company overestimated Labubu’s staying power. The miscalculation exposed a fragile business model dependent on artificial scarcity and hype-driven consumption.

Stock Collapse and Investor Exodus

Pop Mart’s Hong Kong-listed shares have nosedived over 20% since the August 28 release, with some trading sessions seeing drops as steep as 9%. The final blow came on Monday when JPMorgan Chase downgraded the stock to neutral, citing declining product popularity as a primary concern.

Kenny Ng, a securities strategist at Everbright Securities, explained the market psychology succinctly: amid mounting uncertainties, investors collectively chose to lock in profits. The downgrade accelerated this exodus, forcing share prices lower by 6.4% in a single session.

Can Wang Ning’s Empire Recover?

Despite the recent turbulence, Pop Mart remains substantially ahead of 2025—up more than 180% year-to-date. However, analysts project extended weakness. Ke Yan from DZT Research forecasts continued pressure for at least six months as profit-taking intensifies.

Looking forward, growth headwinds are inevitable. Pop Mart achieved a staggering 400% profit surge in the first half of 2025, driven by the global Labubu craze. But maintaining such velocity appears unrealistic. Analyst Jeff Zhang from Morningstar suggests 2026 could see deceleration due to high comparison bases.

Wang Ning had boldly projected 30 billion yuan in annual sales this year. While achievable, investor confidence in hitting stretch targets has visibly deteriorated. The Pop Mart founder’s wealth recovery now hinges on whether his team can revitalize the Labubu brand or launch compelling new collectibles before market sentiment turns irreversibly negative.