China moves to ‘eliminate’ money worship, undesirable trends in financial sector
China’s financial industry is undergoing significant reshuffling, with lay-offs and pay cuts part of Beijing’s efforts to reduce risks
China’s financial regulators have ordered the securities, funds and futures industries to “eliminate” undesirable trends such as money worship, extravagance and excessive speculation in the latest sign of the financial sector’s ongoing painful transformation.
Short-termism and the flaunting of wealth would also be curbed, Chen Huaping, vice-chairman of the China Securities Regulatory Commission (CSRC), said during the launch ceremony of the financial education promotion month on Sunday.
“Industry professionals will be guided to value their professional reputation and adhere to ethical standards, fostering an image of integrity, professionalism, and responsibility that earns the trust and confidence of investors,” Chen said.
The 2024 financial education promotion month has been jointly organised by the National Financial Regulatory Administration, the People’s Bank of China and the CSRC in an effort to popularise financial literacy.
China’s financial industry is undergoing significant reshuffling despite once thriving with a wealth of investment opportunities and projects, endless streams of hot money, well-paid bankers and brokers.
The CSRC will vigorously promote the financial culture of honesty, integrity, ethical profitability, prudence, and compliance
Last week, Chinese media reported that several employees from the China International Capital Corporation (CICC) had received emails notifying them about demotions and pay cuts.
CICC reported in its half-year report that it had reduced its workforce by 246 employees in the first half of 2024, with 221 positions cut in mainland China and 25 in overseas operations.