Global consultant manoeuvres to meet a growing demand in the mainland
Global consulting and IT services company Cap Gemini Ernst & Young has relocated the headquarters of its Chinese operations from Hong Kong to Shanghai this week in an attempt to capture growing demand in the mainland market.
Interest in consulting services was gathering pace in the mainland, outstripping demand in Hong Kong, the company said.
It is another blow to a city seen as losing its position as a springboard for foreign investors entering China.
Just last week, a KPMG report showed that no foreign companies had carried out a major takeover of a Hong Kong company in the first half of this year, as they prefer buying stakes from mainland firms.
Cap Gemini's Asia-Pacific chief executive Paul Thorley said the relocation was a positive reinforcement in China for the consulting firm, in particular in the Shanghai market.