Repercussions of a frivolous wife in China
HAN WOO-DUKThe author is a senior reporter of the China Lab.
In July 2022, a short post was posted on Chinese social media. “My husband is 29 years old this year and gets paid 82,500 yuan a month ($11,301). You see how rich my family is?”
She was bragging. She attached the original proof of income. The internet was stirred. “It’s hard to get 5,000 yuan a month at that age, does this make sense? What company does he work for? Who is he?” People online found a company seal on the certificate and found out that the husband worked for the China International Capital Corporation (CICC), an investment bank.
Founded in 1995, CICC is the most prestigious global IB known as China’s Goldman Sachs. It helped leading companies such as China Telecom and Alibaba going public in foreign stock exchanges. The company makes a lot of money and pays high salaries. Last year, the average annual salary of the employees was about 1.15 million yuan. The husband’s income was 990,000 yuan per year, which was less than the company average, so it was not outrageous.
However, the market logic quickly collapsed due to the attacks from netizens. “Why is common prosperity, the key value of Xi Jinping’s politics, not working in the financial industry?” critics argued. In the end, the CCIC had to fire the employee. It announced that it would cut wages. Other securities firms had to follow. Major securities firms cut their wages by 20-30 percent at the end of last year. Handsome bonuses are also disappearing.
The industry believes that the anti-corruption investigation by the inspection authorities has increased significantly since the “bragging” incident. However, the investigation is happening on a larger scale. When Beijing reshuffled its state organization in March, it set up a central financial committee under the Communist Party. The integrated management function of financial institutions, or companies, held by the administration, the State Council, was transferred to the party. This means the party will directly oversee the flow of money.
The Communist Party is flexing its muscles. In the first half of the year, 87 high-level financial figures were summoned to corruption-related investigations, Hong Kong’s South China Morning Post reported. Key mid-level executives are required to travel to Beijing for a week of “ideology education.” The trainees reportedly have to read the Xi Jinping philosophy and write their reflection. “If you get caught, you have to step down.” The industry cannot but be dispirited.
The power of the state is increasingly overwhelming the market. Not only private companies in IT platforms and real estate, but also investment and financial companies — the spearhead of capitalism — are also sucked in the power. The bragging of the frivolous wife only hasten the trend.
with the Korea JoongAng Daily
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