How Xi’s crackdown turned China’s finance high-flyers into ‘rats’

The broader trend of declining income in the finance sector and increasing regulatory scrutiny is likely to negatively impact financial firms' profits. Moreover, the cautious approach of domestic businesses and reduced foreign investment can create a further downturn in the financial services industry. The associated ETFs and stocks related to the financial sector in China may face downward pressure as investor confidence ebbs.

The continued crackdown on personal wealth and business operations in high-profile industries like finance may lead to a decrease in business activities and investment opportunities, negatively affecting the growth outlook for China’s economy. This could impact various sectors; thus, international investments in China should be cautioned against in the current environment.