If you want a banking job that takes advantage of Hong Kong’s position as the world’s largest offshore yuan-trading centre, you should now focus your efforts on these seven banks: Bank of China, BNP Paribas, China Construction Bank, Citibank, HSBC, ICBC and Standard Chartered.
The Hong Kong Monetary Authority has appointed the firms as primary liquidity providers for offshore yuan business in Hong Kong. Nine other (unnamed) banks missed out. The announcement is designed to help to alleviate an expected yuan cash shortage from the upcoming Shanghai-Hong Kong Stock Connect deal and is a sign that the delayed programme is finally getting closer to a launch date, according to the South China Morning Post.
This is particularly welcome news for BNP Paribas and Standard Chartered who (as we pointed out last month) have boosted their equity sales and research teams in anticipation of an increase in average daily trading values on the Hong Kong Stock Exchange of about 38% by 2015 because of Stock Connect. Other banks have been hiring in IT and compliance in order to be ready for the scheme – which was originally supposed to start last month and which will allow investors to conduct cross-border trading of stocks listed in the two markets.
Hong Kong handles 53% of the global offshore yuan business, with deposits of almost 1 trillion yuan (US$160.9 billion), and is keen to cement its dominant position, which is under threat from centres such as Singapore and London. Recruiters in Singapore have told us previously that banks such as OCBC, ANZ, HSBC, Bank of China and ICBC are increasing their recruitment in yuan-related areas, such as offshore loans, cross-border cash pooling and free-trade accounts. Data released last month from the Monetary Authority of Singapore in September showed that yuan deposits in Singapore reached 254 billion yuan (US$41 billion) in June, up 84% from a year earlier.
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