Xiao Chen*, a finance professional in Shanghai, vividly recalls the allure of the industry when he first entered it. Just three years ago, working at a prestigious private equity firm meant a high salary, lucrative bonuses, and the admiration of peers. In his first year, he earned nearly 750,000 yuan ($106,200) and envisioned a quick path to earning a million yuan annually. Now, his salary has halved, bonuses have evaporated, and his once-glamorous job is far from the thriving career he had anticipated. Xiao Chen, like many others, has seen his role reduced to what is now mockingly referred to as a “finance rat” by Chinese netizens.
This downturn in China’s financial sector is not an isolated incident but part of a broader shift in the country’s economic policies. Under President Xi Jinping, China has turned its focus away from fostering personal wealth and toward promoting “common prosperity.” This shift, accompanied by crackdowns on industries ranging from real estate to technology to finance, is reshaping the country’s economic landscape and redefining what it means to be successful in modern China.
For decades, China’s rapid economic growth allowed ambitious professionals like Xiao Chen to thrive in industries where income and status were tied to personal achievement. Finance was a particularly attractive career path, with high salaries, performance-based bonuses, and the opportunity to rise quickly through the ranks. But as Xi Jinping’s administration has sought to address the growing wealth gap, the focus has shifted to policies aimed at reining in income inequality, and the finance sector has been caught in the crosshairs.
Xiao Chen’s lifestyle, once defined by luxury and opportunity, has been impacted. The financial security that came with his job enabled him to travel to Europe, purchase high-end goods, and enjoy a comfortable standard of living. Today, that lifestyle has changed dramatically. He now vacations in Southeast Asia to save money, and high-end fashion brands like Burberry and Louis Vuitton are no longer affordable luxuries. Yet, compared to the top executives and officials under investigation for corruption, Xiao Chen considers himself fortunate to have avoided legal trouble—an increasing concern among finance professionals as the government intensifies its crackdown.
The crackdown on China’s finance sector extends beyond personal pay cuts. Dozens of high-ranking finance officials and banking executives have been detained in anti-corruption sweeps, including the former chairman of the Bank of China. Meanwhile, salary reductions in both banking and investment firms have become a hot topic on social media, where discontent among finance workers is palpable. Posts on platforms like Xiaohongshu, discussing shrinking paychecks and career dissatisfaction, have garnered millions of views. Popular hashtags such as “quitting finance” and “changing careers from finance” reflect the widespread frustration gripping the industry.
Much of the disillusionment began with a viral social media post in July 2022, when a Xiaohongshu user bragged about her husband’s 82,500-yuan monthly salary at China International Capital Corporation. The post ignited outrage, drawing attention to the stark wage disparity between finance professionals and average workers. In Shanghai, where the average monthly salary is just over 12,000 yuan, the massive gap in earnings became a flashpoint for debate, further fueling the discourse around income inequality and the finance sector’s role in exacerbating the problem.
This discontent coincided with President Xi’s push for “common prosperity,” a policy aimed at narrowing the wealth gap and promoting fairer income distribution. The government’s message was clear: excessive wealth would no longer be tolerated, and finance professionals—once seen as the embodiment of success—were now being criticized for their focus on money. In August 2022, new regulations were introduced by the Ministry of Finance, mandating that companies “optimize internal income distribution” and redesign their salary structures to reflect these changing priorities.
Behind the scenes, the situation is even more complex. Alex*, a manager at a state-controlled bank in Beijing, explains that the directives to cap salaries are often unstated and informal. “There’s no official document that tells us how much we’re allowed to earn,” he says, “but everyone knows that the government has imposed limits on pay.” This lack of transparency has created an atmosphere of uncertainty, as financial institutions grapple with shifting regulations and unpredictable government interventions. In some cases, companies set salary guidelines early in the year, only to adjust them mid-year once they realize they’ve exceeded the unofficial cap.
The impact on Xiao Chen’s work has been profound. With fewer companies launching initial public offerings (IPOs) and foreign investment in China on the decline, he finds himself with far less work. His role, once focused on high-profile projects that brought revenue to his firm, now involves mundane tasks such as managing old data and completing routine administrative work. “Team morale is low,” he says, adding that many of his colleagues are already thinking about their next move. “People are talking about what they’ll do in three to five years.”
Despite the frustrations, there is little evidence that finance professionals are leaving the industry in droves. While some layoffs have occurred, job openings in China are scarce, and even a lower-paying finance job is seen as worth keeping. However, the sense of dissatisfaction is widespread. One Xiaohongshu user likened changing jobs in finance to a game of musical chairs, noting that “if you stand up, you might find your seat is gone.”
Xiao Chen also notes a broader cultural shift in how finance professionals are perceived in Chinese society. “We’re not desirable even in the dating market anymore,” he says. “If someone finds out you work in finance, they’ll tell you not to bother going on the date.”
As China’s economic policies continue to evolve, the future of the finance industry remains uncertain. What is clear, however, is that the once-thriving sector is now facing significant headwinds. For professionals like Xiao Chen, the road ahead is far from the smooth, upward trajectory they once envisioned.
