Chinese i-banks are dominating the world’s top-10 investment banks. According to Bloomberg, Chinese i-bank Citic Securities is the third most valuable brokerage globally. Furthermore, five other mainland firms also listed in the top-10. They are CSC Financial (China Securities), Huatai Securities, China Merchants Securities, Haitong Securities, and Guotai Junan Securities. Chinese investment banks’ stock prices have also surged this year and most brokerages have posted strong first-half results.
Hiring Demand for Investment Banks
While mainland i-banks focus their hiring on Beijing and Shanghai, their Hong Kong recruitment rates have remained strong compared with US and European rivals in the city, according to Abimanu Jeyakumar, head of Selby Jennings for North Asia, in an interview with eFinancial Careers.
“China on-shore headquartered banks are hiring actively in Hong Kong despite the pandemic backdrop,” says Abimanu Jeyakumar.
However, not many of the vacancies are for front-office bankers, says Abimanu Jeyakumar. Hong Kong’s strong IPO pipeline means ECM teams are busy, but Chinese i-banks are transferring analysts and associates from their other teams to meet demand. “They’re hiring instead in areas such as institutional investment," says Abimanu Jeyakumar.
With the expansion of Chinese i-banks in Hong Kong could potentially create new specialist jobs, such as in infrastructure research, which will give rise to fresh career opportunities for the local Hong Kong talent pool.
Will Investment Banks Talent Join Chinese i-Banks?
There is an improvement in the popularity of Chinese investment banks among Hong Kong-based candidates. That can be related to several reasons:
Chinese Investment Banks' Market Capitalisations Rise
As mentioned earlier in the article, Chinese investment banks’ stock prices have surged this year and most brokerages have posted strong first-half results. Mainland banks are rising up the league tables for ECM and DCM revenues in Asia.
Increasing Demand for Hiring
With the special year 2020 of news about high unemployment rate or banks laying off employees. Chinese investment banks hiring remains relatively robust.
Fast Track Careers
While Chinese investment banks increase their market share, i-bankers can be easier to fast track their careers. More opportunities can be provided.
A Route Home
Abimanu Jeyakumar says Hong Kong-based Chinese citizens are joining mainland banks partly because these firms “offer a route home” if they decide to transfer back to China in the future.
With the growing market share and opportunity that Chinese firms are taking, no doubt, more and more Hong Kong investment bankers see their future career prospects lie within those businesses.
To read the original article, please visit eFinancial Careers.
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