Chinese Fund Manager Beats 97% Of Peers By Backing Labubu Doll Maker

Last Updated:June 30, 2025, 21:08 IST

Xie Tianyuan’s fund returned 24 per cent so far this year, outperforming 97 per cent of nearly 2,300 mutual funds in China

A woman visits the Yongle Auction office where limited-edition Labubu artworks are on display in Beijing. (AFP file photo)

A young Chinese fund manager has shot to the top of investment rankings by backing Pop Mart, the maker of the wildly popular Labubu monster dolls.

Xie Tianyuan’s Penghua Selected Return Flexible Allocation Mixed Fund returned 24 per cent so far this year, outperforming 97 per cent of nearly 2,300 mutual funds in China, Bloomberg reported.

After taking over the Shenzhen-based fund in 2024, Xie quickly shifted away from traditional holdings like liquor giant Kweichow Moutai, choosing instead to focus on trend-driven consumer brands that appeal to younger generations. He made Pop Mart his fund’s biggest holding—10.5%, the maximum allowed.

Xie’s approach is rooted in what he calls “emotional consumption," a rising trend among China’s Gen Z shoppers who are drawn to visually appealing, fun products with personal meaning.

His strategy also includes brands like Mao Geping Cosmetics—up 83% this year—pet food company Yantai China Pet Foods, and hygiene brand Chongqing Baiya, all popular with younger buyers.

“The line between what is considered ‘old’ and ‘new’ consumption is blurring, and more companies will join the new consumption pool once they realise that there’s no future for them eking out a survival in their comfort zones. Even old trees can sprout new shoots," Xie said.

Labubu Leads China’s Soft Power Push

Labubu dolls — small, fuzzy creatures with pointy teeth — have become a global hit. Sold in surprise “blind boxes" for around $40, they’ve drawn huge crowds at stores in Asia, Europe, and North America. Celebrities like Rihanna and Cher have been seen with them, boosting their appeal even further.

Pop Mart’s rise reflects a wider wave of Chinese soft power, with cultural exports now gaining fans around the world. Despite concerns about China’s global image, Labubu and other toys are reshaping perceptions and creating a new, trendier side of Chinese influence.

The dolls have become so popular, they’ve sparked knock-offs and detailed online guides to spot fakes. Fans eagerly hunt for rare editions, and Pop Mart’s success has inspired copycat brands known online as “Lafufus".

(With inputs from AFP)

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