Chinese regulators have stepped in to stop banks from using popular gifts — including the viral Labubu dolls — to attract new customers, as financial institutions face growing pressure from falling interest rates and shrinking profit margins.
The National Financial Regulatory Administration’s Zhejiang branch issued guidance to local banks, urging them to halt non-compliant promotions that offer gifts to encourage deposits. The move followed a campaign by Ping An Bank, a Shenzhen-based lender, which offered Labubu collectibles to new customers who deposited at least 50,000 yuan (around $6,960) for three months.
The Labubu dolls, created by artist Kasing Lung, became a sensation in China after celebrities like Blackpink’s Lisa and Rihanna were seen carrying them. Originally inspired by Nordic mythology, these toothy, wide-eyed plush toys are typically sold in “blind boxes” and have become highly sought-after online.
Ping An Bank’s promotion allowed customers to choose between a Labubu 3.0 blind box or a gift package, quickly going viral on Chinese social media platform Xiaohongshu (RedNote). The buzz prompted a rush in deposits, with the dolls reportedly selling out on Pop Mart’s official channels and major e-commerce platforms.
However, state media criticized the campaign, calling it “not a long-term solution” for boosting deposits. Regulators argue that offering physical gifts — such as rice, small home appliances, or online memberships — increases operational costs and places added pressure on banks’ already thin profit margins.
In May, China’s major banks cut deposit interest rates again, with smaller lenders following suit. Term deposit rates have now dropped to just above 1%, further tightening banks’ earnings.
Authorities cited a 2018 rule that prohibits banks from using “inappropriate means” — including gift giveaways or cash incentives — to attract deposits. Regulators have now ordered the immediate suspension of such promotions and the removal of related advertisements.
Ping An Bank stated that the Labubu promotion was a local initiative and declined to provide further comments. Meanwhile, it’s unclear if other regional branches of the regulator will implement similar restrictions.
