Chinese financial experts and fund managers are increasingly seeking alternative careers due to strict government regulations and dwindling growth opportunities in the financial sector. Many are transitioning into industries like education and entertainment, where they see better prospects.
Tighter controls on trading and finance, coupled with a slowing economy, have led to a downturn in China’s financial sector. Companies have been forced to cut salaries and reduce positions. The volume of capital raised through IPOs dropped by 75% in the first half of the year compared to the same period last year, leading to a sharp decline in the workforce in the securities industry.
Xu Yuhe, a former partner at Deep Water Fund Management who worked in capital markets for three years, shifted to the education sector. He sees greater stability and potential, especially in preparing students for overseas studies in places like Hong Kong and Singapore.
The Chinese government’s “common prosperity” policy, introduced in 2021 to narrow the wealth gap, has also played a role. The policy limits executive compensation and calls for the return of bonuses, prompting many finance professionals to explore opportunities abroad or in less-regulated industries.
Additionally, ongoing consolidation within the securities sector is expected to further reduce investment-related jobs. Some financial experts, like Gu Zaifeng, a former IPO advisor, have even chosen simpler lifestyles by taking roles such as village secretaries in rural areas, leaving behind the fast-paced financial world.
This career shift marks a significant response to China’s increasingly challenging financial environment.
