Foreign entrance into China’s rapidly opening markets continues to accelerate with Goldman Sachs being the latest global player to boost its presence with plans to double headcount to 600.
The expansion ambition is part of a five-year plan, according to a «Bloomberg» report citing an unnamed source, engineered by senior management in New York. Soon after being appointed as the bank’s new chief executive, David Solomon asked for a detailed expansion strategy in China over the next five years to tap into the $45 trillion financial market.
The hiring target follows the bank’s recent application in August last year for full control over its investment banking joint venture.
«Goldman spent last year's latter half honing its expansion plan, the person said,» the source added. «In behind-the-scenes talks, senior government officials signaled growing urgency to use capital markets, rather than the country's banking system, to support corporate China as a trade dispute with the US weighed on the economy.»
Talent War
According to the bank’s co-president of Asia ex-Japan, Todd Leland, the floodgate opening and the simultaneous race for talent by numerous global financial giants will create signifiant competition.
«All of us are trying to get to 100 percent, so the race for talent is going to be significant,» he explained. «Whether or not you're able to compete and compensate people and find the right individuals that are a fit, that's by far the biggest challenge.»
Without confirming the hiring target, Leland noted that the bank’s expansion will be driven by the «explosive» growth in asset management in China with around 90 trillion yuan being held by private households. He also highlighted that Chinese leadership «understands the value of global capital flows».
