China’s economy continues to decline, and the Chinese Communist Party is strengthening its control over negative economic information. Recently, authorities have introduced new regulations to enhance control over financial practitioners, with “prohibition of flaunting wealth” added as one of the brokerage firms’ penalization indicators, sparking attention and debate.
According to a report by China News Weekly on March 1st, based on a draft of relevant rules released by the China Securities Regulatory Commission, if employees of securities firms indulge in “excessive luxury” lifestyles, the companies will face penalties. The China Securities Regulatory Commission is overseen by the Chinese Communist Party’s China Securities Regulatory Commission.
The report stated that the China Securities Regulatory Commission plans to revise the “Practical Evaluation Indicators for Securities Firms’ Cultural Construction,” and notably, this revision includes a special penalization indicator for major negative events at brokerage firms. Special penalties will be imposed for evaluating annual major negative events affecting brokerage firms or causing serious impacts, with additional penalties for reputation risks events such as luxury and flaunting wealth.
Currently, the evaluation indicators are seeking opinions from various companies. If approved, it will influence the association’s evaluation methods and scoring of corporate culture within securities companies.
In June of last year, the China Securities Regulatory Commission held a warning meeting, where Chairman Wu Qing demanded the purification of activities outside the “eight-hour” work circle and social circles.
The aforementioned news has sparked attention and discussions among internet users.
Many netizens commented, “Is banning flaunting wealth addressing the root cause? Isn’t the essence about legal and justifiable income? If the income is legal, why can’t it be flaunted?”
“You think banning them from flaunting wealth is for your own good, but it’s actually about protecting their continuation of enjoying a wealthy life! You see it as ‘flaunting wealth,’ but they are simply showcasing their daily lives!”
“They are not fundamentally addressing the wealth gap and polarization, but just telling the rich not to talk about it, not to inform you they are wealthy, so you won’t envy, be jealous, or hate them.”
Another internet user stated, “This strategy really works. When you don’t know they are wealthy, you won’t feel poor. When you don’t feel poor, you will do your best to continue prospering. That’s ultimately what they need.”
In fact, since July 2022, after a public outrage was caused by the flaunting of wealth by employees’ relatives of the Central Enterprises’ CICC, Chinese securities firms have imposed strict regulations on the management of employees’ personal social media accounts. Some brokerage firms check interns’ social media accounts first, and those who excessively post updates are generally not hired.
Despite this, the Chinese financial industry continues to be embroiled in successive scandals involving flaunting wealth. In 2024, Central Enterprise’s brokerage firm, Citic Securities, was embroiled in public controversy. The incident stemmed from an intern who posted a video flaunting their wealth and even disclosed customer information, with the intern being accused of being a “second-generation official.”
Former Chinese journalist Zhao Lanjian previously told Epoch Times that the authorities are eradicating public witnessing and discussions of news events, strengthening a single narrative controlled by the powerful elite in the name of representing the state.