Labubu-maker Pop Mart's shares extend slide as Morgan Stanley removes it from China focus list

BEIJING — Shares in Pop Mart

, the Chinese toy company behind the recent Labubu craze, continued to tumble Friday, after Morgan Stanley removed the stock from a focus list.

Pop Mart’s Hong Kong-listed shares were last down more than 5%, extending their slide from the previous session when they had slumped 5.3%. That’s put the high-flying stock on track for its first negative week since early May — with losses of more than 13% so far. Its year-to-date gains stand at over 160%.

Morgan Stanley said in a note late Wednesday it was replacing Pop Mart with insurance company PICC P&C

in the firm’s China and Hong Kong focus list.