Foreign banks are unperturbed by the coronavirus outbreak and are in fact faced with an opportune window for hiring as they forge ahead with their historic expansion plans in China, sources told finews.asia.

Chinese regulators last year made a landmark announcement that it would scrap foreign ownership limits in its financial sector in 2020 for futures, securities and asset management companies.

The timing couldn’t be worse as the second-largest economy kicked off the year with a deadly coronavirus outbreak that has locally infected over 72,000 individuals and claimed the lives of 1,868.

«Tiny Silver Lining»

According to sources, banks are in some cases not only maintaining pace but accelerating growth to exploit short-term opportunities. Although issues such as travel and communication have undoubtedly been disrupted, one of the rare upsides which have emerged has been an enhanced ability to hire.

«This whole situation is a tragedy. But one tiny, tiny sliver lining has been hiring,» said an unnamed executive search consultant. «The COVID-19 crisis has caused the pool of available talent to grow and leverage from employers to increase.» 

Premium For Uncertain Outcomes

Unlike in international markets, Chinese firms have traditionally had the upper hand in local hiring. Stronger local knowledge, talent access and, in many cases, the implicit backing of the state has enabled home-court advantage for numerous Chinese employers. Foreign firms in many cases have had to pay a premium for bankers with very uncertain outcomes and often short-lived stints. 

«For bankers, the current situation is dire and the outlook is uncertain when working for Chinese firms,» said another anonymous source in a Shanghai-based asset manager.

Full Steam Ahead

«On the other hand, foreign banks are just beginning to launch in the mainland and their plans take a much longer-term time horizon. This could act as a buffer for new hires especially if the outbreak does not improve soon or the aftermath proves to be too destructive. Also, working conditions tend to be more flexible with foreign firms.»

All in all, foreign banks appear unfettered by the health hazards and continue to signal a commitment to forging ahead. Earlier this month, finews.asia reported that UBS doubled its overall China headcount to 1,200 ahead of schedule and will seek to further double headcount in its majority-owned investment banking joint venture in three to four years from the current 400.

100th Anniversary in China

A spokesperson for HSBC also noted that the bank was «monitoring the situation very closely» but did not expect significant disruption to business and remained steadfast in its commitment to expansion.

In the case of J.P. Morgan, it upped the ante by announcing its plans this week to obtain full ownership of its securities, asset management and futures business in 2021 – the bank’s 100th anniversary in China. This follows reports that the American bank recently added 5,00 square meters of office space in Shanghai to reach 15,000 square meters.