China bans banks from using gifts like Labubu dolls to attract deposits

China bans banks from using gifts like Labubu dolls to attract deposits

Chinese regulators have instructed domestic banks to stop offering gifts, including popular Labubu dolls, as incentives to attract deposits. According to a report by The Guardian, citing Bloomberg News, the National Financial Regulatory Administration’s Zhejiang branch issued the directive amid growing concerns about increased operational costs and shrinking profit margins in the banking sector.

The move follows a promotional campaign by a Shenzhen-based bank that offered Labubu dolls—viral collectibles originally inspired by Nordic mythology—to new customers depositing over 50,000 yuan for three months. Other incentives, such as rice, small appliances, and online memberships, have also been discouraged.

With interest rates and bank profit margins at record lows, China’s central bank recently lowered benchmark rates and deposit ceilings to reduce pressure on banks and discourage excessive saving. While such marketing tactics have gained popularity on social media, authorities argue they are unsustainable.