Tough Year Ahead for China's Bankers & Traders?
Observers say that 2019 could be a tougher year for China's bankers and traders due to the economic slowdown last year.
Bankers and brokers may be facing a tough year ahead, say recruitment experts. Brokerages cut headcount by more than 4,000 across the sector in 2018, according to data from the Securities Association of China (SAC). JZ Securities had slashed staff by almost half, while China Securities cut more than 1,000 jobs.
«We’re looking at 2019 as probably a tougher year. Bankers can’t just go out there and name their price,» said John Mullally, regional director at Robert Walters, who was quoted in «South China Morning Post». Mullally handles financial sector recruitment for Southern China and Hong Kong.
Poor Trading Volume
China's capital markets had anticipated the overall economic slowdown last year, with stock trading volume at a five-year low. The country's benchmark index - the Shanghai Composite Index - delivered the worst performance of any major global benchmark. Equity deal value was a fraction of the high mark reached in 2016, while the total deal value of mergers and acquisitions in China fell 14 per cent versus the previous year, according to data compiled by Bloomberg.
PWC expects the amount raised by initial public offerings to decline at least 10 per cent in 2019.
Strong Growth Last Few Years
China’s brokerages were hiring aggressively in recent years, fuelled by rising markets and ample credit. As of Thursday, 109 securities companies were listed as SAC members.
The industry grew to about 350,000 employees in 2017 from 240,000 three years earlier. Hiring did not halt despite the fall in stock market indices in 2015.
