The $40 Doll That Made a 30-Year-Old Fund Manager a Star

In the fast-paced world of Chinese finance, a new legend is being written, not by a seasoned veteran of the stock market, but by a 30-year-old fund manager who saw the future in a $40 monster doll. Xie Tianyuan, with his keen eye for emerging trends, has catapulted his Penghua Selected Return Flexible Allocation Mixed Fund to the top, outperforming a staggering 97% of his peers by making a bold bet on Pop Mart, the company behind the global phenomenon, Labubu.

Since taking the reins of the Shenzhen-based fund in 2024, Xie quickly pivoted away from the traditional, often staid, investments like liquor giant Kweichow Moutai. Instead, he placed his trust, and a maximum allowed 10.5% of his fund's holdings, in Pop Mart, a move that has already yielded a remarkable 24% return this year alone.

The Power of "Emotional Consumption"

Xie's strategy is rooted in a concept he calls "emotional consumption," a powerful force shaping the spending habits of China's Gen Z. This generation isn't just buying products; they're investing in experiences, in visuals, and in items that resonate on a personal level. Labubu dolls, with their quirky charm and collectible "blind box" appeal, perfectly embody this trend.

But Pop Mart isn't Xie's only success story. His portfolio also includes brands like Mao Geping Cosmetics, which has seen an astounding 83% surge this year, alongside pet food company Yantai China Pet Foods and hygiene brand Chongqing Baiya. These diverse investments share a common thread: their strong appeal to a younger, more trend-conscious demographic.

"The line between what is considered ‘old’ and ‘new’ consumption is blurring," Xie explains. "More companies will join the new consumption pool once they realize that there’s no future for them eking out a survival in their comfort zones. Even old trees can sprout new shoots." It's a philosophy that's clearly paying off.

Labubu: A Tiny Titan of Chinese Soft Power

Beyond the financial headlines, Labubu dolls — those small, fuzzy creatures with pointy teeth — have become an unlikely symbol of China's burgeoning soft power. Sold in surprise "blind boxes," these captivating collectibles have drawn massive crowds to stores across Asia, Europe, and North America. Even global icons like Rihanna and Cher have been spotted with them, further cementing their cult status.

Pop Mart's meteoric rise is a testament to a broader shift in global cultural influence. Despite lingering concerns about China's global image, cultural exports like Labubu are quietly reshaping perceptions, presenting a fresh, trend-setting face of Chinese creativity.

The dolls' overwhelming popularity has, inevitably, led to a surge in knock-offs and elaborate online guides dedicated to spotting fakes. The hunt for rare editions has become a passionate pursuit for fans, and Pop Mart's triumph has even inspired a wave of online copycat brands affectionately dubbed "Lafufus."