China bans bank from luring depositors with popular Labubu dolls
A Chinese lender's stunt to woo depositors with gifts including the wildly popular Labubu dolls has been barred by financial regulators. PHOTO: EPA-EFE
BEIJING – A Chinese lender's stunt to woo depositors with gifts including the wildly popular Labubu dolls has been barred by financial regulators, underscoring the increasingly fraught battle among banks for customers as interest rates and profit margins fall.
The Zhejiang branch of the National Financial Regulatory Administration has asked local banks to refrain from giving non-compliant perks to attract deposits, according to people familiar with the matter.
The guidance came in the wake of a promotion by Ping An Bank, which has been offering Labubu collectibles – blind box toys endorsed by celebrities including Lisa from the K-pop group Blackpink – in multiple cities for new depositors who can park in 50,000 yuan (S$8,960) for three months.
Such a practice, which often involves offering free items like rice or small home appliances, as well as e-gifts such as memberships at Internet platforms, was seen as driving up costs at banks and hurting their margins, said the people.
While Ping An Bank's marketing campaign went viral on Chinese social media platform Xiaohongshu and sparked strong interest from potential savers, it also drew criticism from state media which said it was 'not a long-term solution.'
Chinese lenders are walking a tightrope as they balance between deposit taking and protecting margins that are now at record-low levels across the sector. The nation's big banks just conducted a new round of deposit rate cuts in May, with smaller peers following suit and pushing term deposit interests down to just a little above 1 per cent.
The Zhejiang banking regulator has urged the immediate suspension of any products involved in non-compliant deposit-gathering practices, along with the removal of related promotional materials, the people said. It remains unclear whether the regulator's other local divisions have issued similar guidance.
The regulator didn't immediately respond to a request for comment. Ping An Bank said the initiative started off as a small-scale project launched by a local branch, declining to comment further.
China said in a 2018 rule that commercial banks shouldn't attract deposits through 'inappropriate means' such as giving away physical gifts or returning cash. BLOOMBERG
Join ST's Telegram channel and get the latest breaking news delivered to you.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
an hour ago
- Business Times
Tencent said to study deal for US$15 billion game developer Nexon
[BEIJING] Tencent Holdings is studying a potential deal for Nexon, as the Chinese Internet giant looks for ways to bolster its lucrative gaming operations, people with knowledge of the matter said. Shenzhen-based Tencent has reached out to the family of Nexon's late founder Kim Jung-ju to discuss the possibility of an acquisition, the people said, asking not to be identified because the information is private. Kim's family has been speaking to advisers and evaluating options, according to the people. Kim's relatives hold their stake through family investment firm NXC Corp, which – together with affiliated unit NXMH BV – owned 44.4 per cent of Nexon as of June 30, according to Nexon's interim report. Kim's wife and daughters own about 67.6 per cent of NXC. It's unclear how receptive NXC is to a sale of the Nexon holding, and there's no certainty Tencent's deliberations will lead to a transaction, the people said. The structure of any deal hasn't been finalised, they added. A representative for Tencent didn't respond to a request seeking comment, while Nexon and NXC declined to comment. The move comes as Tencent, which already pursued an acquisition of Nexon in 2019, makes fresh forays into other South Korean assets. A subsidiary agreed to buy a nearly 10 per cent stake in Seoul-based music producer SM Entertainment in late May, just as an unofficial ban on K-pop in mainland China wanes. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Known for role-playing games like MapleStory, Nexon was founded in South Korea in 1994 and listed in Japan in 2011, in one of the biggest tech-related initial public offerings at the time. Nexon shares have climbed more than 10 per cent in Tokyo trading this year, giving the company a market value of about $15 billion. Changes in the shareholding structure after Kim's death in 2022 could complicate any deal. Family members handed the Korean government a stake in the NXC holding company in 2023 to settle an inheritance tax bill. Kim's wife and two daughters inherited his stake in NXC after he died in Hawaii. The family also sold treasury shares in NXC back to the holding company for US$478 million in August. The Korean government has sought to sell its holding but failed to find a suitor, local media reported. Shares of rival game developers like Ubisoft Entertainment, GungHo Online Entertainment and Sega Sammy Holdings have declined this year. While Nexon shares are up in 2025, they're nearly 30 per cent off a peak in 2021. NXC explored a sale of its Nexon stake six years ago, attracting interest from Tencent as well as buyout firms such as KKR & Co. and Hillhouse. The sale process was eventually shelved because of a failure to agree on price, Bloomberg News reported at the time. Nexon and Tencent have already worked together, developing Dungeon & Fighter, a key revenue generator. In March, Tencent agreed to invest US$1.3 billion for a 25 per cent stake in a new Ubisoft unit that holds the rights to intellectual properties including Assassin's Creed. Nexon's first-quarter net sales totalled about 114 billion yen (S$1.01 billion), while net income was 26 billion yen. BLOOMBERG
Straits Times
2 hours ago
- Straits Times
China affirms trade deal with US, says it always keeps its word
The deal was reached after a phone call between US President Donald Trump and China's President Xi Jinping on June 5. PHOTO: REUTERS China affirms trade deal with US, says it always keeps its word BEIJING - China on June 12 affirmed a trade deal announced by US President Donald Trump, saying both sides needed to abide by the consensus and adding China always kept its word. The deal, reached after Mr Trump and China's President Xi Jinping spoke on the telephone last week, brings a delicate truce in a trade war between the world's two largest economies. "China has always kept its word and delivered results," Mr Lin Jian, a foreign ministry spokesperson, said at a regular news conference. "Now that a consensus has been reached, both sides should abide by it." The Trump-Xi telephone call broke a standoff that had flared just weeks after a preliminary deal was reached in Geneva. The call was quickly followed by more talks in London that Washington said had put "meat on the bones" of the Geneva agreement to ease bilateral retaliatory tariffs. The Geneva deal had faltered over China's continued curbs on minerals exports, prompting the Trump administration to respond with export controls preventing shipments of semiconductor design software, jet engines for Chinese-made planes and other goods to China. Mr Trump on June 11 said he was very happy with the trade deal. "Our deal with China is done, subject to final approval with President Xi and me," Mr Trump said on Truth Social. "Full magnets, and any necessary rare earths, will be supplied, up front, by China. Likewise, we will provide to China what was agreed to, including Chinese students using our colleges and universities (which has always been good with me!). We are getting a total of 55 per cent tariffs, China is getting 10 per cent." Still, specifics of the latest deal and details on how it will be implemented remain unclear. A White House official said the 55 per cent represents the sum of a baseline 10 per cent "reciprocal" tariff Mr Trump has imposed on goods imported from nearly all US trading partners, 20 per cent on all Chinese imports associated with his accusation that China had not done enough to stem the flow of fentanyl into the US, and pre-existing 25 per cent levies on imports from China put in place during Trump's first presidential term. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
2 hours ago
- Straits Times
Indonesia's Prabowo to meet Putin in Russia for talks
Indonesia's President Prabowo Subianto (pictured) had visited Russian President Vladimir Putin before in 2024, before his October inauguration. PHOTO: REUTERS Indonesia's Prabowo to meet Putin in Russia for talks JAKARTA - Indonesia's President Prabowo Subianto will meet counterpart Vladimir Putin this month on his first visit to Russia since taking office, officials said on June 12, as South-east Asia's biggest economy seeks to boost ties with Moscow. Jakarta maintains a neutral foreign policy, refusing to take sides in the Ukraine conflict or in the competition between Washington and Beijing, but Mr Prabowo has touted stronger relations with Moscow. He will visit Russia from June 18 to 20 to hold talks with Mr Putin and attend an economic forum in St Petersburg, where he will deliver a speech, foreign ministry spokesman Rolliansyah Soemirat told reporters. 'The president and a limited number of delegates are scheduled to visit St Petersburg, Russia, on June 18-20. This visit is to fulfil the invitation from the Russian President, Vladimir Putin, to a bilateral meeting,' Mr Rolliansyah said. 'The bilateral meeting is expected to discuss the development of bilateral cooperation, as well as a discussion between leaders on the regional and global issues that become a common concern,' he said. Mr Prabowo will visit Singapore on June 16 to attend a leaders' retreat, where he will meet the country's prime minister and president, before flying to Russia, Mr Rolliansyah said. Presidential spokesman Philips Vermonte also confirmed the planned trips to AFP. Mr Prabowo visited Mr Putin in Moscow last year before being inaugurated as Indonesia's new president in October, calling Russia a 'great friend'. The two nations held their first joint naval drills on Java island in November and Mr Prabowo later hosted top Russian security official Sergei Shoigu for talks in the capital Jakarta. Mr Prabowo has pledged to be bolder on the world stage compared to his predecessor Joko Widodo. Jakarta has billion-dollar trade ties with Moscow, yet major arms imports have stalled in recent years after Russia seized Crimea in 2014 and launched its full-scale military offensive on Ukraine in 2022. However, since becoming defence minister in 2019, Mr Prabowo has kept alive a US$1.1 billion (S$1.4 billion) Russian fighter jet deal agreed a year earlier, despite the reported threat of US sanctions. AFP Join ST's Telegram channel and get the latest breaking news delivered to you.
