Mr. Shangkong | Are Chinese banks really prepared for launch in Hong Kong?
Hiring of Western bankers and star analysts by Chinese lenders eager to boost international image may not be enough to guarantee success
It's no secret in Hong Kong's financial community that mainland banks have become the major job creators in the city, rescuing many laid-off bankers, mostly from Western banks.
Now it seems more job opportunities will appear at mainland banks and securities firms as they are set to open branches and offices in Hong Kong this year, thanks to Beijing's latest policy thrust.
Senior officials at the China Securities Regulatory Commission in Beijing have been in talks with major mainland securities firms about ways to ease regulatory requirements to allow them to expand businesses overseas by setting up offshore units.
A formal announcement about the new, simplified approval process for mainland securities firms to set up offshore units is expected in weeks. Hong Kong has traditionally been considered the first stop when mainland firms seek to expand overseas.
So don't be surprised if in the next few years, mainland banks emerge as the city's largest non-local financial job providers.
More jobs are fine, but are mainland securities firms and banks ready to hire talent and expand abroad? Overseas expansion is both time- and money-consuming, and so far early birds such as China International Capital Corp (CICC) - led by Levin Zhu, the son of ex-Premier Zhu Rongji - have little to show by way of growth beyond its traditional habitat.
Beijing-based CICC maintains a large operation in Hong Kong as it was one of the first mainland investment banks to set up shop in the city.