A-Share Inclusion, Bond Connect, and REITs - What These Means to the Job Market

Eric Zhu August 18, 2017 3 mins read

It has been quite some exciting months for us here at Morgan McKinley Financial Services Team. Lots of things have happened, is happening or about to happen on the market. For us recruiters, it has never been better for us to get engaged in the industries.

The purpose of my blog today is to share a bit about our perspectives on the public market. I shall first give out a quick re-cap of the market, and then to discuss what it means for the job market, and what to be expected in the future 3 to 6 months.

Let’s take a quick look of the market in recent 12 months:

  • 2016 Q1, QDLP & PFM discussion re-ignited national-wise;
  • 2016 Q2, CIBM is opened the public sectors;
  • 2016 Q3, PFM license is open to foreign applicants;
  • March 2017, QDLP (Batch 3) open for application;
  • March 2017, China bond standardisation initiated;
  • May, 2017, ESG Products Seminars initiated in Beijing;
  • June 2017, MSCI A-Share inclusion;
  • July 2017, Bond-connect launches with major SOEs/ POEs under central government speculation;
  • August 2017, Public Pension Fund officially entered the securities market of China.

 

These are some of the most excited news we’ve witnessed for the market. It is of no doubt that the market is opening, and it is of no doubt that it is a great time for foreign giants to enter the market, or the local conglomerates going abroad.

Here at Morgan McKinley, we are proud of being able to be part of this grand process. For us, on the one hand, such progress means a rather irreversible projectile of China being more open to the global market. On the other hand, it also means that this market is growing more and more attractive to global investors. Though it is still early to say that real money investment flow is coming any minute soon. More than ever in the short history of mainland public market, are we close to attractive these investments.

The question is, what can we truly expect in the near coming future, what we can expect from the market, and what types of job in Shanghai/ Beijing we think is good for a long term personal career planning:

  • Financial Services, Auxiliary Companies

These sectors, including but not limited to analytical service companies, fund service companies, or valuation companies, are traditionally more considered as vendor services but not core financial services at the first glance.

However, if we take a look at the more developed market in this world, these are actually some of the most profitable sectors on the Wall Street and Canary Wharf. One of the key reason for that is the competition in these sectors are usually much more gentle than in investment banking/ investment managements. To be more precisely, there are only a few names on the street, while hundreds of brokers fighting resources with each others.

This very specific industry, we believe it is booming with good compensation as well as work/ life balance offered.

  • ABS and Syndications

It is becoming much more clear that the fund raising methods from corporate side is becoming more and more diversified. With leasing companies among financial services growing matured, the price of getting smaller loan has significantly dropped.

Here at Morgan McKinley, we understand that there is a long way to go before China debt market became matured, that all the ratings here on the market don’t get too much doubt and judge from the outside world. However, since earlier this year, there has been a loud and clear voice from Beijing calling for deleverage and standardisation on this market.

For those who has the interest yet still doubting, we truly encourage you to take a look at any opportunities that comes to the candidates. So long as these corporate names are validated and business are not aggressive, it worth taking a look in it for a rainy check.

Thanks for your reading, hope there is more from us to share soon!

Eric Zhu's picture
Operations Director | Financial Services Recruitment
ezhu@morganmckinley.com