Shanghai drawing financial talent with better pay and prospects

Global financial talent is increasingly looking to relocate to Shanghai as the city offers faster salary growth and wider career opportunities than Hong Kong, despite high taxes and quality-of-life concerns.

According to British recruitment agency Hays, 66 per cent of mainland employers increased salaries at least 6 per cent last year, compared with only 17 per cent of companies in Hong Kong.

A Hays survey of 2,600 employers across Asia also found that 67 per cent of mainland companies said they would give employees a pay rise this year, compared with just 17 per cent in Hong Kong.

"We've got a lot of inquiries from expats who want to relocate to Shanghai," said Simon Lance, the regional director for Hays in China. "They are prepared to accept compromises on life, air quality and those sorts of things."

Although executive pay is generally higher in Hong Kong, Shanghai is quickly catching up, and in some fields, the salaries are in fact higher there.

A salary guide compiled by the recruitment firm shows that a risk analyst with a hedge fund based in Shanghai could earn up to 800,000 yuan (HK$1.02 million) a year last year, 46 per cent more than a Hong Kong counterpart, who would make about HK$700,000.