In playgrounds across Shanghai, it has become common to see groups of children huddled together, striking swap deals for My Little Pony cards like they’re trading stocks on Wall Street. “You have this one, but I don’t!”

The cards are part of a wider mania for collectibles based on popular anime characters that is sweeping across China — sparking an economic frenzy that is even being felt on the country’s stock markets.

Anime and manga have been popular in China for decades, but the trend for collecting related merchandise has blown up over the past couple of years. Children and young adults alike have begun shelling out serious money on everything from trading cards to badges, posters, dolls, and plush toys.

One college student living in Suzhou, a city bordering Shanghai, told Sixth Tone that she had amassed a large collection of badges and stuffed dolls, as she felt pressure to match the other anime fans she saw posting on social media.

“Sometimes I think if others are buying so much, I also need to prove myself by buying more,” said the student, surnamed Li.

Liu Pengcheng, a student based in Shanghai, said he loved buying products related to the Japanese manga Chiikawa, but that he refused to pay the massive mark-ups charged for some items. The lengths to which other fans are willing to go to follow the latest trends can be shocking, he said.

“Some people even go into debt to make purchases,” Liu said.

In 2023, China’s “second dimension” market — a term encompassing anime, comics, manga, and other related subcultures — reached 210 billion yuan ($29 billion), according to the Qianzhan Industrial Research Institute.

The market for merchandise based on “second-dimension” intellectual property skyrocketed from 5.3 billion yuan in 2016 to 102.4 billion yuan in 2023 — a nearly 20-fold increase.

This explosive growth has triggered a stampede of “second-dimension” companies rushing to list on China’s stock markets. But their share prices have often been highly volatile, sparking concerns in the finance industry.

Wahlap Technology, an arcade game brand based in southern China, has had to issue several notices in recent weeks urging investors not to speculate on its stock. Alpha Group, an animation company, has also had to remind investors to be careful, noting that its business is still in the early stages of development.

“Investors are advised to pay attention to the risks of secondary-market trading, make rational decisions, and invest cautiously,” it said in a statement.

An employee at a card game company told Shanghai-based media outlet The Paper that its main consumer base were young people born in the 1990s and 2000s, who are willing to invest in their hobbies.

Social media plays an important role in promoting “second-dimension” products, the employee said, as it was helping brands develop exclusive fan communities.

But Zhang Shule, an industry analyst, has cautioned that China’s own brands are still struggling to connect with consumers. Mainstream anime and manga brands are mostly from Japan, South Korea, and the West, with domestic IP having a relatively limited influence at the moment, Zhang told The Paper.

Chen Kangning, another college student based in Shanghai, told Sixth Tone that she viewed her badge collection as a form of self-expression. “Seeing these products gives a sense of satisfaction,” she said.

Additional reporting: Wen Ming.

(Header image: A customer browses through an anime-themed store at a commercial complex in Shanghai, July 14, 2024. Yin Liqin/CNS/IC)