Shares in Chinese toymaker Pop Mart saw volatile trading on Wednesday, a day after the company posted a near-400% surge in net profit, driven by booming global demand for its Labubu dolls. Pop Mart dropped as much as 4.7% before paring losses to climb above 2% as of 10.45 a.m. local time (10:45 p.m. ET Tuesday)

The Chinese company Pop Mart is officially more valuable than industry giants Mattel and Sanrio, thanks to the popularity of Labubu dolls.

China's Pop Mart , which has taken the world by storm with its ugly-cute Labubu doll, reported a nearly 400% first-half net profit on Tuesday on high demand for the toys and a shift towards higher-margin overseas markets.