China has been in the midst of turning Shanghai into a financial hub along the likes of New York and London. And now, perhaps the biggest attractant for financial professionals has been dropped—banker pay in mainland China is going way up.
According to Bloomberg, the average pay for senior bankers in China will increase 42% this year. The statistic is for China’s capital, Beijing, but we imagine the trend can be extended to Shanghai, where banking is flourishing even more.
Last summer, it was reported that one of the biggest hindrances Shanghai faced was getting financial professionals there in the first place. Now, with the expectation of higher pay, bankers should be flocking there.
But it turns out, the city is already pretty banker-friendly. The most populated city in China may, in fact, already be ready for a swatch of financiers.
The come from everywhere from Sydney to Berlin. Since China's economic boom began, many multi-national companies (and some Fortune 500s like Kraft and Walt Disney) decided to move their HQs to Shanghai.
That has attracted more foreigners to work for their home country's' brands. Check out sites like ShanghaiExpat.com and Shanghaiist.com to get the low-down on the scene (and to check out their parties- like the one pictured here).
JP Morgan and Morgan Stanley have both entered into joint venture project with Shanghai securities firms
- JPMorgan will own 33% of a firm started with First Capital Securities
- Morgan Stanley will own 33% of a firm it starts with Huaxin Securities
The agreement was made at the beginning of this year. A licence to enter the Chinese market had not been given to a U.S. bank in 6 years.
According to The Atlantic, Chinese companies are paying white Westerners in suits $1000 a week to be stay at fancy hotels and wine, dine and shake hands potential clients/business associates. Apparently, an American company hires these fake businessmen for Chinese companies to give them face. It's called 'quality control.'
Mostly, these hires just hang out. One exec told Atlantic writer Mitch Moxley that they needed him for one week a month and that he could sit in the office and watch movies. Sometimes though, it gets complicated. One hire had to give a speech on reducing carbon em missions for a California based company.
The area is meant to put all Shanghai area hedge funds in one place. It's about 1.8 miles out of the city, and it's in the shape of triangle (like Greenwich), expect to see a lot of fellow ex-pats and bankers around.
Hang out in Shanghai's French Concession (area once designated for the French) and you'll feel transported to Western Europe. The neighbourhood is full of great shopping, nightlife and food... we hear Nepali Kitchen is quite delicious.
Brawl on the Bund is an annual black tie charity event to support Leo's Foundation- an organisation that helps premature babies with respiratory problems and supports Fudan Children's Hospital. Guests enjoy a five course meal, wine, and 7 boxing matches.
Source: Double Dragon Alliance