Chinese financial regulators have imposed a blanket ban on banks offering promotional gifts — including toys and home appliances — to attract new customers, after a high-profile marketing campaign featuring popular “Labubu” dolls drew widespread attention online.

The National Financial Regulatory Administration (NFRA) said it has instructed financial institutions to halt all such campaigns, deeming them illegal and counterproductive.

The move came in response to a recent campaign by Ping An Bank in Shenzhen, which offered the collectible Labubu dolls — widely popular among young Chinese — to customers making a three-month fixed deposit of approximately $7,000 (about 50,000 yuan). The promotion quickly gained traction on Chinese social media platforms, prompting other banks to follow suit with similar schemes.

However, the NFRA swiftly intervened, warning that such incentives could lead to rising operational costs and encourage unsustainable competition among banks. A statement issued by the regulator said, “Banks must not engage in activities that distort the market by offering gifts, whether they are dolls, rice, home appliances, or online service subscriptions.”

Regulators argued that such marketing tactics focus on boosting customer acquisition numbers rather than improving service quality or long-term profitability. The ban comes at a time when China’s central bank has recently cut key interest rates in a bid to support the slowing economy — a move that has already squeezed banks’ profit margins.

Observers say the regulator’s move is also an attempt to rein in the growing trend of consumer gimmicks in the country’s financial sector, where lenders increasingly rely on novelty items and viral promotions to attract depositors amid rising competition.

The NFRA added that it would continue to monitor banks closely to ensure compliance with the new guidelines and warned of punitive measures for violators.