Pop Mart International Group, the creator of the viral Labubu dolls, saw its shares surge in Hong Kong trading after announcing its first share buyback in nearly two years. The company acquired 1.4 million shares for HK$251 million ($32 million), a move that lifted its stock price by as much as 10% to HK$199.60. This buyback comes as a boost to investor sentiment, which had been cooling due to the declining hype around Labubu dolls on social media.

The buyback marks a strategic shift for Pop Mart, which had experienced a meteoric rise in 2024 and early 2025 as Labubu dolls went viral. However, the company's share price has been declining since late 2025 as the social media buzz faded. The buyback signals confidence in the company's future prospects, potentially stabilizing investor sentiment and providing a floor for the stock price.

This move is significant as it indicates Pop Mart's commitment to returning value to shareholders amid a challenging market environment. The company's ability to navigate through the ebb and flow of social media trends will be crucial as it continues to innovate and maintain its market position. Investors will be watching closely to see if this buyback is the start of a more aggressive capital return strategy.