Labubu Doll Controversy in China Banks, Banned by Financial Regulators
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In China, a well-known bank recently tried to attract new customers by offering free Labubu dolls — a highly popular collectible toy — as a gift for depositing money. However, this marketing strategy has now been stopped by financial regulators.
Why the Bank Used Labubu Dolls as Gifts
Ping An Bank, a major Chinese bank, launched a promotional campaign offering Labubu dolls to customers who deposited at least 50,000 yuan for three months. These dolls are part of the trendy “blind box” collectibles and are especially famous because celebrities like Lisa from the K-pop group Blackpink have promoted them. This promotion quickly went viral on Chinese social media, especially on Xiaohongshu, and attracted a lot of attention from young savers.
Regulators Say “No” to Such Gifts
However, the Zhejiang branch of the National Financial Regulatory Administration (NFRA) has asked local banks to stop giving gifts that don’t follow official rules. These types of rewards — including not only dolls, but also items like rice, small household appliances, and even online memberships — are seen as unfair tactics to gather deposits. Regulators believe such practices increase costs for banks and hurt profit margins, especially at a time when interest rates are already very low.
According to sources familiar with the matter, the regulator has instructed banks to immediately stop such promotions and remove any related advertisements or materials.
What’s the Bigger Issue for Banks?
This situation shows a bigger problem faced by banks in China: intense competition for deposits in a low-interest rate environment. Recently, major banks across the country cut their deposit interest rates, and smaller banks followed. In some cases, deposit rates have dropped to just above 1%, making it harder for banks to attract savings the traditional way.
Banks are trying hard to attract depositors while also protecting their slim profit margins. Using trendy toys or gifts may bring in short-term gains, but regulators and even state media have criticized it, calling it “not a long-term solution.”
Regulations Already in Place
This isn’t the first time such tactics have been questioned. In 2018, China introduced rules saying that commercial banks should not use improper ways — like giving gifts or cashback — to attract deposits. The recent crackdown shows that regulators are now more serious about enforcing these rules.
What the Bank Said
Ping An Bank responded to the issue, saying that the campaign was started as a small local experiment by one of its branches. The bank declined to provide more details.
Conclusion
Chinese financial regulators are now closely monitoring how banks try to get new customers. Promotions that use popular gifts like Labubu dolls may seem creative, but if they don’t follow the rules, they can be stopped. The focus is now on fair practices, cost control, and maintaining financial stability in a time of low profits for banks.
