China's internet finance boom helps close salary gap with Hong Kong

The booming internet finance sector on the mainland has made the job market more attractive there as the salary gap between major Chinese cities and Hong Kong is set to further narrow with mainland employers either increasing pay perks to retain talent or offering higher pay to attract professionals.

On average, the salaries offered by financial firms in cities like Beijing and Shanghai are now 15 to 20 per cent lower than those in Hong Kong's financial industry, according to Simon Lance, regional director for recruitment agency Hays in China.

But a narrowing salary gap, a relatively higher cost of living in Hong Kong and better career progression opportunities on the mainland could help Shanghai and Beijing draw more global talent, he added.

The mainland's internet finance industry, encompassing online payment services, internet-based person-to-person lending platforms and online financial consultancies has grown rapidly in recent years amid Beijing's planned reform of the banking sector.

Internet finance is now regarded as the future industry leader by well-educated Chinese youngsters as they seek jobs in the sector.

"Competition to attract and retain capable employees has largely driven up the salary level," said Evan Guo, chief executive of recruitment firm Zhaopin.

"Hong Kong doesn't have an internet finance industry yet and it is expected that some IT talent and risk-control managers would be interested in relocating to Shanghai given the huge market potential here."