Prospects for finance and accounting professionals in Hong Kong and China are currently phenomenal.
The booming Chinese economy is the fourth largest in the world and growing at an exponential rate, despite forecasts that real GDP growth will ease to around 10 per cent in 2008. Although there are some uncertainties on the horizon for the economy over the next 12 months, including the US sub-prime fallout, the aftermath of the Beijing Olympics in August and expected cooling measures being placed on the Chinese economy, experts agree that the protracted and severe undersupply of skilled finance and accounting professionals will continue.
Mainland China's growth has created a huge drain on the supply of available candidates in the Hong Kong market. Alan Mait, manager, new territories and southern China commerce, of Michael Page International says, 'There's been a significant number of IPO opportunities, with mainland China companies looking to list in Hong Kong.
'This has created an unprecedented demand for accounting professionals to have Hong Kong qualifications but to be based in China.'
There is fierce competition among employers trying to attract and retain good candidates. A recent Hudson survey found that in Hong Kong, 72 per cent of employers are prepared to make counter-offers to retain staff.
In the banking and finance sector, over 40 per cent of staff stay two years or less with their employer, moving on if they are not rapidly promoted.
The volatility in staffing is a boon for recruiters but creates headaches for companies scrambling to hold on to staff while being confronted with salary increase demands of 20 per cent or more. In China, the situation is even worse for employers. Mait says it's not unheard of for people to get pay increases of 40 to 50 per cent at the senior end of the market.
Guy Day is managing director, Asia for Ambition. He says: 'There are all sorts of challenges in the mainland market. Inflation is putting pressure on salaries, and staff loyalty is very low, resulting in high turnover. There's also a massive skills shortage from years of lack of training in mainland China. There are lots of qualified accountants around but they're at the very junior levels. Trying to find mainland Chinese who are at the senior finance manager, financial controller or CFO-type level is very hard.'
Mait agrees, and adds that quality middle management in mainland China is almost non-existent. 'It's a case of pulling senior management from places like Hong Kong or overseas and having these people try to educate middle management in cases of financial control, which is proving quite difficult,' he says.
The demand in Hong Kong is largely for those with experience in banking and financial services. According to James Carss, director, banking and financial services, Hong Kong Hudson, there is a significant shortage of financial controllers, management accountants and the traditional accounting-type functions.
The burgeoning economy and increased consumer spending power has seen a rapid rise in demand for finance and accounting professionals in the retail sector, particularly in multinational companies stepping into the luxury goods market. Manufacturing and property development are also big in China, and in Macau the growth of gaming has been extraordinary over the past 12 months.
Skills-wise, Mait says it's all about China opening up and operations expanding across the region. 'Chinese companies are taking their operations global and that calls for people with international tax skills. M&A driven by the Chinese economy is another. Companies are looking for people who really have a good idea as to strategy, not only on the deal-origination side but taking it through and doing post-merger integration work. IPO remains a pretty hot skill to have.'
Mandarin language skills are a prerequisite for most of the jobs in China.
