Published Date : Oct 15, 2015
Taking inspiration from a trend prevalent in the U.S., senior bankers in China are jumping into the bandwagon to join the Chinese technology companies.
During the last two months, head of China technology from Credit Suisse, head of China from J.P Morgan Chase, and the head of media, telecommunications, and technology from Merrill Lynch unit of Bank of America for Asia, have all abandoned Chinese tech companies. Banking jobs in China have also become less lucrative with a combination of lower compensations, cost controls, and increased regulations, as told by Robert Grandy, regional head of Korn Ferry for financial services in Asia Pacific.
Mr. Grandy said that the compensation that is at present being offered in China is not favorable, when compared with as it may have been in the corporates a few years ago. Furthermore, cost controls have also made bargain tougher adding to the woes of the banking sector in China.
People in China are being asked to cut down on their entertainment expense and other resources. Due to slow activity and low interest rates, bankers in China are left with only a few opportunities to do deals.
However, the scenario prevalent in the Chinese technology companies are pretty contrasting. Billions of dollars invested in venture capital have fuelled valuations, thereby resulting in cash-rich balance sheets. Many of these companies are also putting in increased funding to continue operations in a tandem by acquisitions at home and abroad. This consequently creates opportunities for the people with banking experience.
Mr. Grandy said in this regard that the corporates in China will be hiring in areas that earlier belonged to the busy banks of China, and now that belongs to the technology, insurance, and healthcare sectors.
Bankers according to Mr. Grandy will explore opportunities where they will have a chance to perform well. Hence, they will explore opportunities with startup companies with impressive growth prospective so that they may grow along with the company.