Short Sellers Double Down on Pop Mart Despite Losses
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- Short interest in Pop Mart climbed to 12.67% of shares outstanding as of Tuesday, up from 11.3% in April, per S&P Global Market Intelligence
- Pop Mart shares have more than halved from their August 2025 peak to HK$153 ($19.5) but have gained 8% since their April year-to-date low
- Pop Mart is the only one of Hong Kong's 10 most-shorted stocks where short sellers are currently losing money, according to S&P Global
- S&P Global's Matt Chessum flagged "resilient" consumer demand and warned of a growing risk of a technical short squeeze as the stock rebounds from April lows
- Citigroup's Lydia Ling retained a buy rating in June with a target price trimmed to HK$263, citing long-term IP development and overseas expansion while flagging near-term overseas volatility
- Bernstein's Melinda Hu held an underperform rating with a HK$181 target, pointing to management's "pit stop year" framing in the 2025 annual report as evidence of decelerating growth
- Pop Mart shares are 92.4% utilized — nearly all borrowable shares already on loan — making it harder and more expensive for new short positions to enter the trade
Why it matters: With 92.4% utilization, new bearish bets on Pop Mart are becoming costlier and harder to execute just as the stock has rebounded 8% off April lows. The crowded short trade, already losing money, risks a technical squeeze that could force bearish traders to buy back shares and accelerate the rally.
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