Competition is everything in business, and human resources are the key. A company needs an effective workforce and management team to climb to the top.

This is conventional thinking for human resource managers competing for local financial talent.

The gradual opening of China's financial industries is heating up competition for both customers and skilled staff. Industry analysts expect it will escalate further and may continue for the next several years.

China's financial markets will be fully open by late-2006. All foreign and domestic financial firms will be on equal ground, and the process has already begun. Some restrictions against foreign financial companies have been removed over the past three years. Foreign banks will be permitted to engage in renminbi business in 17 key cities, including Shenzhen, Shanghai and Beijing, for example, pending approval by the China Banking Regulatory Commission (CBRC). Three more cities Ningbo in East China's Zhejiang Province, Shantou in South China's Guangdong Province and Xi'an in Northwest China's Shaanxi Province are slated to open the domestic currency business to foreign banks this year. These banks have been adding employees to their local branches in preparation.

Foreign banks are also establishing more branches throughout China. The Hong Kong and Shanghai Banking Corp (HSBC), for example, opened a second Beijing branch in the World Trade Centre early this year. Some of the over 60 people currently working in the second Beijing branch are new to the bank. HSBC is planning to double its Beijing workforce this year, according to senior bank officials.

Rival Citigroup also opened a second Beijing branch in the Zhongguancun area, China's "Silicon Valley".

Standard Chartered opened a private banking centre in the Oriental Plaza, which is situated in an international business district in Beijing. The bank intends to increase its mainland workforce to about 1,300 this year, according to senior executives.

New foreign bank branches in the capital and other major cities are just part of the story of increasing foreign financial expansion in the mainland market. About 60 foreign banks from more than 20 countries have established more than 200 financial firms on the Chinese mainland.

Other foreign financial institutions, including investment banks, fund management companies, insurers and trust firms, are accelerating their entry to China before the market becomes fully open.

Many new companies and products are being launched. More than 20 new insurance companies were established in China last year alone.

This means more local employment as foreign players customize services and localize operations.

That's only one side, however. Domestic financial institutions are also busy preparing for the open market. Ma Mingzhe, chairman of People's Insurance Co of China (PICC), has been searching the globe for competent senior executives to lead his conglomerate.

He has signed eight industry veterans to key positions, and he plans to turn PICC into an internationally competitive insurance company. That vision is why current general manager Zhang Zixin finally joined the company after a two-year courtship.

The demand for financial talent has stirred up competition in China's human resources market. According to a report by online job and recruitment portal zhaopin.com, demand for finance specialists increased approximately 13 per cent last year. Monthly salaries also rose to 4,411 yuan (US$545) from 3,674 yuan (US$455) a year ago.

Despite the surging demand, however, many financial service providers say they have no problem finding the right people to support their growth and expansion in China.

"There are enough candidates in China for us to choose from," says Xu Han, deputy chief executive officer at Pacific Credit Card Centre, co-established by Bank of Communications and HSBC.

He made the remarks at the launch of its dual-currency credit card last month in Beijing. About two-thirds of the 60-plus people in the centre are new recruits.

"Local Chinese graduates are well qualified, but it still takes good training to help them grow," says Henry Tsuei, former president of North Asia for leading payment software provider First Data International.

Most financial companies have thus established their own training systems. Standard Chartered, for example, takes in a number of university graduates every year and trains them in different positions and locations. Qualified participants will later be regarded as senior management candidates. Many foreign banks have similar trainee programmes, including Citibank and HSBC.

"Most of our senior executives are promoted from within," says Justin Ting, manager for HSBC's Beijing branch.

Both foreign and domestic financial institutions have established their own training systems.

"We prefer training employees ourselves, instead of taking them from competitors," says PICC's Zhang.

Industry observers say that while China might be able to provide junior-level talent, the local human resources market still lacks enough senior management professionals. That is why many domestic companies are introducing foreign senior executives.

Top prospects in the job market usually hold bachelor's degrees or above, have three to five years of relevant work experience, and can speak reasonable English.

"Competition for human resources will continue," says Gao Yong, chief executive officer at Chinacareer, a leading recruitment solutions provider.

"Things will really heat up in 2006 and 2007, particularly in Shanghai, Beijing, Guangzhou and Shenzhen."

(China Daily 09/12/2005 page4)