All aboard the Shanghai-Hong Kong 'through train'

As Hong Kong prepares to allow cross-border stock trading with Shanghai this month, the Hong Kong Stock Exchange, securities companies, and brokers are expecting to benefit from increased transaction volumes and new business opportunities.

The so-called 'through train' stock connect scheme has been widely speculated to open on October 27 and will allow investors to conduct cross-border trading of stocks listed in Hong Kong and Shanghai under a total quota of 550 billion yuan (HK$694 billion). It will potentially invigorate the A-share market in China by attracting more foreign capital and boost Chinese investment in the Asia-Pacific region.

The Shanghai-Hong Kong Stock Connect is unlikely to have an immediate impact on the Hong Kong jobs market in the coming quarter but over the coming years it has the potential to boost cross-border investment, especially when China's financial sector opens up further and investors can access a fully convertible yuan.

The gradual integration of the two stock markets is expected to generate new jobs in the banking and IT sectors. We are already seeing strong demand for Java Developers who specialise in electronic trading platforms. Banks are developing their front and back offices to support their focus on equity derivatives.

The development of core trading banking systems has increased rapidly as banks upgrade their legacy technology to accommodate a much faster delivery of their banking services. The outlook for the Hong Kong and Chinese equities markets remains upbeat and there has been hiring in this space.

Candidates experienced in Equities Sales and Sales Trading who can bring an active client base are sought by smaller regional and Chinese firms. Skills in Delta One and Algorithmic trading are in demand as employers continue to require high speed and low cost trading options.

Transaction Banking specialists are also highly sought as demand has been especially high for trade, cash, and factoring sales. These are product specialists who work alongside Relationship Managers to promote cash, trade, structured financing, and other customised solutions products to increase cross-selling opportunities.

Retail and Private Banking Relationship Managers are sought after as retail banks are currently aggressively hiring for their front lines in a push to increase revenue. Meanwhile private banks are investing in staff as they see upside in the region for private banking products.

Retail banks are also seeing the benefits of the Bancassurance model and are looking to increase the size of their sales force by hiring more Bancassurrance Salespeople. Banks are offering insurance products in addition to their traditional banking products.

Meanwhile, as regulations change or new ones are created, there continues to be high demand for Risk Managers who can help banks keep on top of the latest regulatory developments.

Finally, local market expertise is sought, meaning that candidates from abroad are finding it increasingly difficult to secure a position locally. Employers are looking for candidates with Mandarin and Cantonese language skills coupled with recent work experience in China.