Latest news with #PingAnBank
Yahoo
19 hours ago
- Business
- Yahoo
China bans banks from luring customers with popular Labubu dolls
Chinese authorities have banned domestic banks from luring customers with gifts including the hugely popular Labubu dolls, amid fierce competition among lenders as interest rates and profit margins decline. The Zhejiang branch of China's financial regulator, the National Financial Regulatory Administration, has asked local banks to refrain from offering non-compliant perks to attract deposits, Bloomberg News reported. The guidance came after the Shenzhen-based Ping An Bank ran a promotion offering Pop Mart's Labubu dolls in several cities to new customers who deposit at least 50,000 yuan (£5,162) for three months. The fluffy dolls with a sharp-toothed grin first came on to the market in 2019 and are mostly sold in 'blind boxes'. They went viral after Lisa from the K-pop band BlackPink was photographed with one attached to her luxury handbag last year, followed by the singer Rihanna. The Labubu dolls are the creation of Kasing Lung, an artist born in Hong Kong and raised in the Netherlands. He was inspired by Nordic mythology when he created his 'Monsters' characters for a series of picture books in 2015, including Labubu. Ping An Bank's promotion offered new customers a choice between a Labubu 3.0 blind box and a gift package. However, the Chinese regulator wants to stop the practice of offering customers gifts, which can also include rice, small home appliances and online memberships, because it is concerned that this will increase costs at banks and hurt their profit margins. Banks' margins are at a record low. China's central bank cut benchmark interest rates last month for the first time since October in an attempt to shield the economy from the impact of Donald Trump's trade war. A few days later, the authorities lowered the ceilings on deposit rates to protect banks' profit margins and discourage savings. Ping An Bank's marketing campaign went viral on the Chinese social media platform Xiaohongshu, also known as RedNote, and drew strong interest from savers, but state media said it was 'not a long-term solution'. Labubu dolls have sold out on Chinese e-commerce sites and Pop Mart's official online channels, according to the news outlet Yicai, owned by the Shanghai Media group. Sign in to access your portfolio
The Star
2 days ago
- Business
- The Star
China bans bank from luring depositors with gifts
The guidance came in the wake of a promotion by Ping An Bank Co, which has been offering Labubu collectibles in multiple cities for new depositors who can park in 50,000 yuan for three months. — Bloomberg 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 sources. The guidance came in the wake of a promotion by Ping An Bank Co, which has been offering Labubu collectibles – blind box toys – in multiple cities for new depositors who can park in 50,000 yuan 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 sources. 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. — Bloomberg
The Guardian
2 days ago
- Business
- The Guardian
China bans banks from luring customers with popular Labubu dolls
Chinese authorities have banned domestic banks from luring customers with gifts including the hugely popular Labubu dolls, amid fierce competition among lenders as interest rates and profit margins decline. The Zhejiang branch of China's financial regulator, the National Financial Regulatory Administration, has asked local banks to refrain from offering non-compliant perks to attract deposits, Bloomberg News reported. The new guidance came after Ping An Bank ran a promotion, offering Pop Mart's Labubu dolls in several cities to new customers who deposit at least 50,000 yuan (£5,162) for three months. The cute fluffy dolls, which feature a sharp-toothed grin, first came on to the market in 2019 and are mostly sold in 'blind boxes'. They went viral after Lisa from the K-pop band BlackPink was photographed with one attached to her luxury handbag last year, followed by Rihanna. The Labubu dolls are the creation of Kasing Lung, an artist who was born in Hong Kong and raised in the Netherlands. He was inspired by Nordic mythology when he created his 'Monsters' characters for a series of picture books in 2015, including Labubu. Ping An Bank's promotion offered new customers a choice between a Labubu 3.0 blind box and a gift package. However, the Chinese regulator wants to stop the practice of offering customers gifts, which can also include rice, small home appliances and online memberships, because it is concerned that this will drive up costs at banks and hurt their profit margins. Margins are at a record low. Ping An Bank's marketing campaign went viral on the Chinese social media platform Xiaohongshu, also known as RedNote, and drew strong interest from savers, but state media said it was 'not a long-term solution'. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion Labubu dolls have sold out on Chinese e-commerce sites and Pop Mart's official online channels, according to the news outlet Yicai, owned by Shanghai Media Group.
The Star
2 days ago
- Business
- The Star
China bans bank from luring depositors with popular Labubu dolls
The guidance came in the wake of a promotion by Ping An Bank, which has been offering Labubu collectibles in multiple cities for new depositors. - 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$9,000) 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 did not 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 should not attract deposits through 'inappropriate means' such as giving away physical gifts or returning cash. - Bloomberg
South China Morning Post
2 days ago
- Business
- South China Morning Post
Pop Mart's Labubu becomes bait for China's Ping An Bank to lure young customers
Hoping the world's trendiest monster will scare up some new customers, China's Ping An Bank is rewarding those who open new accounts with a Pop Mart Lababu doll amid fierce competition for young customers among Chinese retail banks. New clients who open a savings account and deposit more than 50,000 yuan (US$6,954) for at least three months could receive a blind box from the first or second series of the Chinese toy retailer's popular collectibles, according to media reports. Customers who also apply for a credit card could receive a blind box from the third series. With its pointy ears, sharp teeth and mischievous grin, Labubu has attained viral popularity among young consumers worldwide and driven a heady rise in Pop Mart's revenue and share price . The plush figures – often sold in opaque boxes so that buyers cannot know exactly which one they are getting – typically retail for around 99 yuan on the mainland, but they sell for considerably more in other regions, such as the US and Middle East . Prices can soar on the secondary market due to high demand and limited supply. Ping An Bank's campaign with the sought-after figure quickly drew attention and went viral on RedNote, an Instagram-style platform popular for lifestyle tips. In a post on Monday that garnered more than 1,100 likes overnight, a Sichuan province-based user called Ouqixilanhua claimed to have rushed to a local branch after learning of the giveaway. 'I opened a [bank] account and made a deposit right away,' the user said. 'Money has to be saved somewhere, and I couldn't pass up a free collectible.' Shen Meng, a director at Beijing-based investment bank Chanson & Company, said Chinese retail banks were struggling to attract and retain young customers amid low interest rates, while the number of retail banks 'far exceeded' what the market needed. The total number of retail banking customers was on the decline as the country's population was dropping and ageing, with overall income levels slipping and unemployment running high among young people, Shen added.
