The Chinese financial sector is going through a rough patch‚ forcing many professionals to rethink their careers. Government oversight and a slow economy are pushing bankers and fund managers to explore new avenues.
Xu Yuhe a former hedge fund partner‚ switched to helping students study abroad after three years in a stagnant market. He sees educational services as a more stable business‚ tapping into the trend of people seeking international experiences in nearby locations like Hong Kong or Singapore.
The $67 trillion financial sector has been hit hard by various initiatives‚ including the “common prosperity“ campaign launched roughly three years ago. This drive aims to close the wealth gap through measures like salary caps and bonus clawbacks.
The hedge fund industry is facing a clampdown on computer-driven quant trading‚ which regulators say could be unfair to retail investors. This has led to:
- Thousands of hedge funds closing
- Difficulties in benefiting from market rallies
- Failure of data-based strategies to predict policy shifts
The $4.4 trillion mutual fund industry has also seen significant turnover among executives and portfolio managers. Companies are focusing on compensation reviews and cost control‚ with some like China Merchants Fund Management asking senior executives to return excess pay.
Nowadays‚ everywhere in this industry you come across deadbeat investors and entrepreneurs on the verge of life and death
The investment banking sector isnt faring much better. Regulators have tightened the vetting process for listings‚ leading to a near-halt in onshore IPOs. First-half fundraising for IPO deals dropped 75% compared to the previous year.
This surplus of bankers has led to interesting career changes. Gu Zaifeng‚ formerly of Zheshang Securities‚ became a village secretary in rural Shandong province. Meanwhile‚ Wu Shichun‚ a venture capitalist‚ has found success as a stand-up comedian‚ using his industry experiences as material for his performances
As the industry consolidates‚ more job losses are expected. The securities sector has already seen staff numbers shrink by nearly 15000 since late 2022‚ a trend likely to continue as regulators push for consolidation in a fragmented industry