Standard Chartered is hiring at least 100 people in China as the British bank prepares to open an investment banking business in the nation focused on specialty bond deals, according to the chairman, designate of the new entity.
Standard Chartered’s Asia head of financial markets, John Tan, stated that their Beijing-based unit, which was awarded a licence in January, will be operational by the end of the year, subject permission from local regulators.
“We are actively hiring people now and intend to have close to 100 staff on day one,” according to Reuters, adding that the team would increase as the business grows.
To begin operations in China, an investment bank must have at least ten competent employees.
Standard Chartered intends to employ rapidly as multinational firms expand their investment banking operations in China. Because China allows foreign companies to fully own their domestic operations, this rivalry is expected to raise the cost of talent acquisition for financial enterprises.
JPMorgan, Goldman Sachs, and Morgan Stanley already oversee their investment banking activities in the region.
Standard Chartered, which focuses on Asia, intends to hire for a variety of investment banking positions, including senior positions, mostly in Beijing.
Tan did not disclose how much the lender will spend on the hiring.
The Standard Chartered veteran, with 16 years of experience across Chinese mainland, Hong Kong, and Taiwan markets, needs regulators’ approval to officially assume the role of the unit’s chairman.
The unit’s strategic focus will be on assisting local companies in raising capital through exchange-traded fixed-income issuance.
The bank has discovered two venues for people to invest their money, and they believe that many people from all over the world will want to invest in them in the future.
These locations are extremely valuable, and the risks and returns for those who invest in them are favourable.
China has a large amount of money that the government owes to citizens in the form of government bonds. These are traded among banks.
Other forms of bonds are traded on the stock exchange as well, but they are not as popular as government bonds.
“Global investors have become more cautious in investing in China fixed income due to the volatilities seen over the last two years, particularly on the turmoil in real estate markets,’’ Tan said.
Last year, Standard Chartered earned $1.16bn from China, the lender’s fourth largest operating income region after Hong Kong, Singapore, and India, when banks suffered slower expansion due to COVID-19 regulations.