“I now realize I definitely chose the wrong industry,” reflects Xiao Chen*, an employee at a private equity firm in Shanghai, one of China’s leading financial hubs. For Xiao Chen and many others in the finance industry, the once-glamorous career path has become increasingly fraught with challenges, as the nation’s economic policies take a sharp turn under the leadership of President Xi Jinping.
Three years ago, Xiao Chen’s career seemed full of promise. In his first year on the job, he earned nearly 750,000 yuan ($106,200), and he confidently expected to surpass the coveted million-yuan mark in no time. But fast forward to the present, and his annual earnings have halved, his salary has been frozen, and the lucrative bonuses that once made up a significant portion of his income have disappeared entirely.
The prestige and allure of working in finance in China have faded. Xiao Chen now considers himself just another “finance rat,” a derisive term increasingly used to describe finance professionals on social media. The sentiment reflects the broader disillusionment that has gripped the industry, as China’s once-booming economy slows and shifts toward a more state-controlled model.
Under Xi’s leadership, the Chinese government has become increasingly concerned with the widening gap between the rich and the poor. As a result, high earners in industries like finance have found themselves in the crosshairs of an ongoing crackdown on personal wealth, part of a broader campaign to promote “common prosperity.” This campaign has targeted not only billionaires and large corporations but also individuals in industries like technology, real estate, and finance. Even celebrities have been urged to tone down displays of wealth on social media, signaling a clear shift away from the wealth-centric culture of the past few decades.
For finance professionals like Xiao Chen, this crackdown has meant significant lifestyle changes. He recalls trading in a planned holiday to Europe for a more affordable trip to Southeast Asia. Luxuries like high-end fashion brands—once within easy reach—are now out of the question. “I wouldn’t even consider buying from Burberry or Louis Vuitton anymore,” he admits.
But while Xiao Chen’s financial sacrifices have been personal, others in the industry have faced more severe consequences. A growing number of finance executives and officials have found themselves under investigation, with some, including the former chairman of the Bank of China, detained as part of the government’s sweeping anti-corruption efforts. The finance industry is increasingly under scrutiny, and although few companies openly discuss the issue, pay cuts are becoming a common topic on social media platforms like Weibo and Xiaohongshu.
Conversations about salary reductions and shrinking bonuses have gone viral on these platforms, sparking widespread discussion. Hashtags like “quitting finance” and “changing career from finance” have garnered millions of views, revealing the extent of the disillusionment within the industry. While the pandemic had already begun squeezing incomes for some, a viral social media post in July 2022 brought the issue to the forefront. A user on Xiaohongshu bragged about her husband’s 82,500-yuan monthly salary at China International Capital Corporation, one of the country’s top financial services firms. The post ignited outrage, with many expressing shock at the stark wage disparity between finance professionals and the average worker. In Shanghai, China’s wealthiest city, the average monthly salary hovers around just 12,000 yuan—underscoring the widening gap.
This outrage further fueled a national conversation about income inequality that had been simmering since Xi Jinping’s call for “common prosperity” in 2021. Shortly after, in August 2022, China’s Ministry of Finance introduced new regulations aimed at “optimizing internal income distribution” and revising salary structures. A year later, China’s top anti-corruption watchdog lambasted the culture of “finance elites” and their obsession with money, reinforcing that finance was now squarely in the government’s crosshairs.
The crackdown’s effects have been wide-ranging, though often subtle. Alex*, a manager at a state-controlled bank in Beijing, explains that while the government’s directives are rarely explicitly stated, the message is clear: salaries are capped. “You won’t find it written down anywhere, even if there is an official document,” he says. “But everyone knows the cap exists—we just don’t know exactly how high or low it is.”
Alex describes a tense environment in which financial institutions must scramble to comply with the government’s ever-evolving policies. In some cases, banks issue salary guidance early in the year, only to later realize they have exceeded the caps, leading to abrupt cuts or performance targets designed to justify the reductions.
For Xiao Chen, the impact of these changes has been immediate. His workload has diminished significantly as fewer companies are listing shares on the stock market, and foreign investment in China has declined. Many domestic businesses, wary of the unpredictable regulatory environment, have scaled back their activities. With fewer projects coming in, Xiao Chen now spends his days managing data from old deals rather than bringing in new business. “Morale is low,” he says, adding that most of the conversations within his team are pessimistic. “People are already planning their exit strategies, wondering what to do in three to five years.”
While it’s difficult to quantify how many finance professionals have left the industry, layoffs have occurred, and job prospects in China are increasingly bleak. Even with reduced pay, many workers in finance are reluctant to leave their positions, given the scarcity of employment opportunities elsewhere. One Xiaohongshu user likened the current job market to a game of musical chairs: “If you stand up, you might find your seat is gone.”
Xiao Chen notes that the shift in sentiment extends beyond the workplace. The once-prestigious finance career no longer holds the same appeal in Chinese society. “People don’t even want to date finance workers anymore,” he laments. “As soon as they hear you work in finance, you’re told not to bother.”
As China’s economic landscape continues to evolve, the future of the finance industry remains uncertain. For workers like Xiao Chen, what was once a ticket to success and status has now become a source of uncertainty and frustration. And as the government’s crackdown intensifies, many are left questioning their place in an industry that has fallen out of favor in the new China.
The names of the finance workers have been changed to protect their identities.