This article only represents the author's own views.

Its focus is adult education, but QuantaSing Group Ltd. (QSG.US) was just a child on China’s corporate scene, at 4 years old, when it debuted with a Nasdaq IPO in 2023. Now the young company is marking another milestone in its brief lifetime with an acquisition that will make it the first U.S.-listed company in the hot sector for Chinese pop toy development.

Investors applauded the company’s new toy story, which saw QuantaSing announce in late March that it would acquire a controlling stake in Shenzhen Yiqi Culture Ltd., also called Letsvan, for undisclosed terms. The stock more than doubled in the days after the announcement, and, despite a recent pullback amid recent market volatility, is still about 50% higher than pre-announcement levels.