While the need for managers with overseas experience is growing, Chinese companies have also begun to have more confidence in the abilities of their local workforces. As a result, more local people are being hired for international expansion projects.

Mr Chan said that many middle-management jobs were being filled up by local Chinese while top-tier executives were being recruited from other countries.

'The fact they are hiring experienced managers from outside shows they have realised the challenges of doing business in the rest of the world. They want to hire employees who have a different experience of the international press and markets,' Mr Chan said.

If Chinese companies have to learn how business operates on an international level, firms coming to work in China also face a steep learning curve.

'Management style, staff evaluation and the decision-making process are all very different. Unlike in the west, all decisions tend to revert to the boss on the mainland. There is also a tendency to introduce the personal element into negotiations. You really have to draw your line and stand your ground when doing business in China,' Mr Chan said. Such differences in the working environment and culture mean that companies require people with more skills than are sought after by human resources departments in western countries. Mr Chan said it helped if a prospective employee was aware of domestic and international markets, was innovative, could speak the local language and, most importantly, was flexible.

Those with a less adventurous attitude who still wish to capitalise on the opportunities available in China have the option of working for multinational companies, which provide the comfort of a more familiar corporate culture. However, precisely for this reason, multinationals may not wish to hire executives from inside China.

It would help if prospective employees are re-educated about the mainland, according to Mr Chan. For example, he said, many regulators on the mainland have changed the way they work since 2002 and, in some cases, have become more forward-thinking than Hong Kong-based regulators.

'They have become more like the regulators in the west, but with modifications,' he said.

Managers also need to learn how the system is administered in such areas as taxation, where there are differences between the mainland and Hong Kong. There are different rules for different provinces on the mainland, for example.

Prospective employees are often required to have the experience of doing business in China and the ability to work with and manage local Chinese people. They should also have useful contacts.

'Hong Kong Chinese [candidates] do have a definite advantage here since they have a better understanding of the culture and values and, possibly, a grasp of Putonghua,' he said.

Nevertheless, any corporation that wanted to conduct business successfully in the mainland should provide orientation programmes for its employees on how business was conducted there, Mr Chan said. There should also be on-the-job training and a course about the city or province where the company was, he said.

LOCAL MOVES

Chinese companies are getting more confident about recruiting locally.

For executive positions, firms are recruiting personnel with international experience.

Hong Kong Chinese candidates have a significant advantage in this job market.

Companies are recognising the value of better compliance and corporate governance systems.