Empirical research conducted in numerous countries provides substantial evidence supporting the pivotal role of cultural capital in comprehending educational inequality. However, the operation of cultural capital varies across certain regions in East Asia due to distinct educational systems. This study integrates micro-level mechanisms of cultural capital, teacher bias, and the Chinese educational system to identify its determinants. Findings from the China Education Panel Survey indicate that families with high socioeconomic status tend to cultivate cultural capital but downplay its importance during critical exams. Teachers tend to favour students with cultural capital, which can indirectly enhance academic performance. However, the standardized examination system ultimately suppresses this effect and leads to an overall negative impact. This study suggests that the educational system plays a pivotal role in determining cultural capital and highlights the necessity for further discussions on its relationship with institutions.