China's government, under Xi Jinping, is imposing salary caps on bankers as part of its 'Common Prosperity' initiative, aimed at reducing income inequality and addressing social stability concerns. The move targets financial institutions, including the China International Capital Corporation (CICC), which is being positioned as a model for party-first financial firms. This intervention comes amidst slowing economic growth and increasing pressure on small banks, with technocrats needing to address these issues. However, there are concerns that such measures, including demands for bankers to return previous years' pay, could lead to a Pyrrhic victory, potentially harming the development of top-tier investment banks.