China Taps Wall Street’s Chinese Talent Pool
by CSC staff, Shanghai
Lin Kaiqing, a Ph.D. from the UCLA Department of Mathematics, was once a mathematical researcher working on such problems as Goldbach’s Conjecture. In 1997 he moved over to the financial industry and worked for Washington Mutual, JP Morgan Chase, and Credit Suisse before joining Duff & Phelps, an independent financial consulting and investment banking firm.
Born in Taiwan, Lin Kaiqing has always considered Mainland China his home. Now his biggest wish is to return to Shanghai and set up a team to operate the company’s Asian business.
The financial crisis has pushed the unemployment rate in the US to 6.7%. Wall Street may cut as many as 200,000 employees in the financial and related IT areas. Chen Xunyong, founder and chairman of Wall Street Ren, an organization of Chinese Wall Street professionals, says nearly 10% of Chinese working on Wall Street have lost their jobs.
“I have several friends that have been recently laid off. They can find a new job within months, but during this time they have begun to notice work opportunities in China that they didn’t pay much attention to in the past,” Chen said. “Our group began to pay attention to the Chinese market and job opportunities in China. I went to China last month during my vacation and met senior managers of many securities and fund companies.”
Seizing opportunities in China
Chen was surprised at Chinese investment companies’ overseas strategies and eagerness to invest overseas, and sees great opportunities in China
“Originally we founded this group to offer Chinese working on Wall Street a communication platform and to assist domestic governments and organizations recruiting in the US. But it’s the first time for us to go back to learn about China and form a dialogue mechanism.
After taking the first steps, Wall Street Ren began to contact Chinese organizations and recruiters more frequently and introduce China to its members. For many Wall Street professionals who having been working in the US for many years, going back to China would be a “great leap”.
“In the past, many Chinese went back home soon after finishing financial courses in the US and didn’t have rich working experience. Now it’s different. Those returning or who have already returned are often senior professionals above manager level.
Chinese companies, including the China Investment Company, have been issuing recruiting advertisements in overseas media such as The Wall Street Journal. Overseas Chinese professionals are beginning to realize Chinese financial firms’ determination to expand overseas business and recruit overseas talents.
Among talent going back, 50% choose to work in Hong Kong, and the rest come back to Mainland China. “According to our figures, of the senior positions in Wall Street financial institutions occupied by Chinese, 90% are by Mainlanders.
Worries still exist
“Of course we still have concerns. I never drink wine, and I’m afraid I can’t get used to the working environment in Mainland China,” Lin Kaiqing told China Business News, adding that some possible returnees worried if they’ll be able to accommodate themselves to the Chinese working environment, which requires high sociability.
Lin Kaiqing’s biggest concern is whether his 11-year-old son and 5-year-old daughter can accommodate themselves to a pure Chinese teaching environment.
Lin Kaiqing has always planned to return to China when his children are grown. “I first planned to go back to LA after retirement, but now, although I think LA is good, it’s not my home. I must go back to China, my real home.”
Some of Lin’s friends have already returned to China, and one of them is now working for Everbright Bank. They all say their life in China is very pleasant. Lin is considering a return to China after his company is licensed to establishment a Shanghai branch.
High salary
In December, recruiters from Shanghai, Beijing, and Nanjing will fly to New York, Chicago, San Francisco, and Boston to recruit Wall Street talent. The Mayor of Nanjing even flew to New York himself. Positions open to Chinese Wall Street talent include international financial market investment, financial and economic research, asset management, risk control, financial derivatives development, industry risk analysis, and creative supervision.
Nanjing also wants to bring in expertise in electronic and biological technology from the San Francisco Bay Area. Recruiters from Shanghai include the Shanghai Stock Exchange, the government of Pudong District, Shenyin Wanguo Securities Company, Guotai Junan Securities Company, Shanghai Pudong Development Bank, and Citic Bank.
“Salaries will be lower back in China. In the US an annual salary for a senior manager in an investment firm can amount to millions of dollars, and domestic institutions can’t pay so much. But money is not the reason they go back,” said Chen Xunyong. “And of course the salary gap is narrowing some.”
Lin Kaiqing also said he was surprised when he heard domestic companies are willing to pay four or five million yuan per year to Wall Street talent. For him, this is really a big move, as big as the 4 trillion yuan economic relief package.