China’s Crackdown on Financial Excess: Aiming to Eliminate ‘Money Worship’ and Promote Ethical Standards Amid Industry Reshuffle

China is taking steps to eradicate the reverence for money and unfavorable practices in the financial sector. The Chinese financial industry is experiencing a substantial reorganization, with job terminations and salary reductions being implemented by Beijing in a bid to minimize potential hazards.

Financial overseers in China have instructed the securities, funds, and futures sectors to eradicate negative tendencies such as the idolization of wealth, lavishness, and extreme speculation. This move is the most recent indicator of the continuing challenging metamorphosis of the financial industry.

Chen Huaping, the Vice Chairman of the China Securities Regulatory Commission (CSRC), stated that there would be a reduction in short-term thinking and conspicuous displays of wealth. He made this announcement during the inauguration of the financial education promotion month on Sunday.

"Chen stated that industry experts will be encouraged to appreciate their professional standing and stick to ethical guidelines. This will cultivate a persona of honesty, professionalism, and accountability, thereby gaining the trust and faith of investors."

The National Financial Regulatory Administration, the People's Bank of China, and the CSRC have collaboratively arranged the 2024 financial education promotion month. This is aimed at spreading financial knowledge.

Despite previously flourishing with a plethora of investment prospects and projects, abundant inflow of capital, and highly compensated bankers and brokers, China's financial sector is currently experiencing substantial restructuring.