[Hong Kong] Financial sector talent squeeze as expats leave

The Chinese territory of Hong Kong continues to follow Beijing’s “COVID zero” policy rather than adapting to life with the virus, yet “COVID zero” is no closer. With no signs of the government easing its restrictions an increasing number of expats are seriously considering leaving, The Japan Times reports.

The current insecurity among expats means global banks, asset managers and corporate law firms are facing up to the reality that a number of their staff may exit after annual bonuses are paid out in the first three months of the year, according to headhunters and industry executives.

Over 40 per cent of members recently surveyed by the American Chamber of Commerce in Hong Kong said they were more likely to leave Hong Kong and most cited international travel restrictions as the leading factor.

“For the fastest growing sector of wealth and asset management, there is a lack of trained supply of talent. If draconian travel restrictions continue for an undefined and lengthy period, the talent issue will become all the more serious,” Tara Joseph - president of the chamber - said. “Many in the industry also expect that eventually many jobs in the sector will be taken up by mainland Chinese talent, leading to a big talent shift.”

Hong Kong’s government has played down any pending talent crunch. It reportedly said fighting COVID-19 was its top priority, for the good of the whole city, and that it was investing in talent to counter any loss of expertise or any damage to its status as a global financial hub.

“We believe that Hong Kong will continue to bring together talents from local and international sources,” a government spokesperson said. “The government will continue to promote diversified development in the financial sector, foster local talents and attract foreign talents in various aspects to tie in with the long-term development of the Hong Kong economy.”

Heading for the exit

Hong Kong’s population declined 1.2 per cent between mid-2020 and mid-2021, with more than 75,000 people leaving the city, according to Hong Kong’s Census and Statistics Department. Immigration department data shows that Hong Kong has had five months of consecutive net outflow in travel, since September 2021.

The total number of visa applicants from all countries under the ‘general employment policy’ dropped by a third in 2021 to 10,073. Applicants for the financial services sector were down 23 per cent.

The Hong Kong Monetary Authority said it was aware of pandemic-related challenges facing financial institutions, but said they should be “transitory” and that the fundamentals underpinning Hong Kong’s status as a global financial hub would remain strong.

Hong Kong’s Securities and Futures Commission said the number of licensed firms and individuals operating in the city had continued to grow through the end of last year, underscoring its attractiveness.

However, many expats are not waiting to see how things play out.

A financial analyst at a global research group who has made Hong Kong his home for more than five years told Reuters he has been waiting for the city’s international borders to open so he can see his family and friends.

With no change in sight, he said he has decided to move back to the US in the second quarter.

“Basically, we need to see our families and there is no end in sight to travel restrictions, no roadmap or plan,” he said. “Eventually you quit waiting and realise moving is the only option.”

Source: The Japan Times

(Quotes via original reporting)

The Chinese territory of Hong Kong continues to follow Beijing’s “COVID zero” policy rather than adapting to life with the virus, yet “COVID zero” is no closer. With no signs of the government easing its restrictions an increasing number of expats are seriously considering leaving, The Japan Times reports.

The current insecurity among expats means global banks, asset managers and corporate law firms are facing up to the reality that a number of their staff may exit after annual bonuses are paid out in the first three months of the year, according to headhunters and industry executives.

Over 40 per cent of members recently surveyed by the American Chamber of Commerce in Hong Kong said they were more likely to leave Hong Kong and most cited international travel restrictions as the leading factor.

“For the fastest growing sector of wealth and asset management, there is a lack of trained supply of talent. If draconian travel restrictions continue for an undefined and lengthy period, the talent issue will become all the more serious,” Tara Joseph - president of the chamber - said. “Many in the industry also expect that eventually many jobs in the sector will be taken up by mainland Chinese talent, leading to a big talent shift.”

Hong Kong’s government has played down any pending talent crunch. It reportedly said fighting COVID-19 was its top priority, for the good of the whole city, and that it was investing in talent to counter any loss of expertise or any damage to its status as a global financial hub.

“We believe that Hong Kong will continue to bring together talents from local and international sources,” a government spokesperson said. “The government will continue to promote diversified development in the financial sector, foster local talents and attract foreign talents in various aspects to tie in with the long-term development of the Hong Kong economy.”

Heading for the exit

Hong Kong’s population declined 1.2 per cent between mid-2020 and mid-2021, with more than 75,000 people leaving the city, according to Hong Kong’s Census and Statistics Department. Immigration department data shows that Hong Kong has had five months of consecutive net outflow in travel, since September 2021.

The total number of visa applicants from all countries under the ‘general employment policy’ dropped by a third in 2021 to 10,073. Applicants for the financial services sector were down 23 per cent.

The Hong Kong Monetary Authority said it was aware of pandemic-related challenges facing financial institutions, but said they should be “transitory” and that the fundamentals underpinning Hong Kong’s status as a global financial hub would remain strong.

Hong Kong’s Securities and Futures Commission said the number of licensed firms and individuals operating in the city had continued to grow through the end of last year, underscoring its attractiveness.

However, many expats are not waiting to see how things play out.

A financial analyst at a global research group who has made Hong Kong his home for more than five years told Reuters he has been waiting for the city’s international borders to open so he can see his family and friends.

With no change in sight, he said he has decided to move back to the US in the second quarter.

“Basically, we need to see our families and there is no end in sight to travel restrictions, no roadmap or plan,” he said. “Eventually you quit waiting and realise moving is the only option.”

Source: The Japan Times

(Quotes via original reporting)