China stock market jitters keep calm and carry on - Viewpoint - careers advice blog Viewpoint careers advice blog

China stock market jitters keep calm and carry on - Viewpoint - careers advice blog Despite global concerns about the Chinese economy, the recruitment sector in the country has yet to suffer any material impact. Candidates in China’s financial sector should keep a close eye on trends within the financial sector, as the sector looks set to rapidly expand during the coming years. Candidates should also closely monitor the financial health of the employers they are applying to. China economic growth: a bump in the road What we are witnessing is just a bump in the road of Chinas growth journey There has been a lot of coverage in the Western media about the Chinese financial markets crash and the risk of a dramatic fall in China’s economic growth rate. Local reports have not displayed the same levels of anxiety, although coverage in the Chinese media is also increasing, leading to more people feeling concerned. For many observers what we are witnessing is just a bump in the road of China’s growth journey. “The underlying story for Asia, including China, remains one of relatively rapid economic growth. Concerns about Chinas slowing economy need to be balanced against the fact that the countrys services sector, including financial services, has now become its engine of growth,” notes Duncan Innes-Ker, Regional Editor for Asia at The Economist Intelligence Unit. “While we expect a marked slowdown in Chinas financial sector in the second half of the year, reflecting the stock market crash and its aftermath, the medium term picture remains very positive. “Chinas financial system is relatively straightforward and under-developed compared with the countrys needs. Moreover, there is still strong demand among foreign investors for greater exposure to Chinese assets. These suggest that, this years gyrations aside, the Chinese financial sector will expand strongly in the coming years.” Naturally, such expansion provides candidates from outside of the region with a potentially rich source of jobs and contracts. China remains attractive to investors and candidates The Chinese financial sector will expand strongly in the coming years The Organisation for Economic Cooperation and Development (OECD), has cut its GDP growth forecast for China to 6.7% in 2015, compared to 7.3% last year, and to 6.5% for next year. Put into a global context, that remains a much higher rate of economic growth than many developing economies, making careers in China an attractive prospect for both expats and local candidates. “Through the rest of Asia, relatively rapid economic growth and the ongoing development of financial services offer a good platform for further employment growth in the sector. However, in the short term the increase in risk aversion among global investors, linked to the China slowdown and the prospective rise in US interest rates, will weigh on Asian financial markets, dampening financial sector job prospects,” says Duncan. More due diligence required when looking at new employers Although I am yet to witness a softening in demand from our perspective, I have noticed a very subtle change in local candidates’ attitudes. Chinese candidates are now paying more attention to the media. In the past, their prime consideration when looking at a position was salary, as they were able to assume that the companies they joined would carry on growing and expanding. They are now paying more attention to job security and stability. I think this is a good idea. In the current macroeconomic climate, candidates should do their due diligence and consider the financial situations of their employers and consider whether they have a strong platform for growth. Outlook: cautiously optimistic Candidates are now paying more attention to job security and stability Duncan believes that financial hiring in China is likely to be very strong in the coming years: “The emergence of the regional government bond market offers some particularly exciting opportunities. Nonetheless, there is likely to have been an inevitable short-term retrenchment in equities trading positions as a result of the market slump.” I also see demand remaining strong for experienced candidates in the financial sector, especially in all the subsets of regulatory change and governance: risk, compliance, anti-trust, anti-bribery and anti-money laundering. This is why I remain cautiously optimistic. However, the few months ahead of us will be key. Be part of the conversation. Join our Financial Markets Industry Insights LinkedIn group to share your thoughts and stay up-to-date with the latest financial markets business, employment and recruitment news. To share your thoughts on this article and to stay up to date with the latest business, employment and recruitment news in the financial markets sector, please join our LinkedIn group, Financial Markets Industry Insights with Hays. Join the conversation //