Financial Careers
There is a lot to be excited about for financial careers in China. With the enormous rise of the middle class and the tremendous amount of deal activity in so many industries, a financial career will be dynamic, fast paced, challenging. Below is some quick info to get acquainted with Investment Banking, Private Equity or Venture Capital in China.
Basics
For the most part, the finance industry in China is still very much in the growth and maturing phase. The main hubs are going to be either Beijing or Shanghai. For the prior decades the landscape was stewarded by multinational marque firms like Citi or Goldman. Nowadays, there are crops of local firms, such as CITIC or 5Y (fka Morningside) that compete aggressively with global players in investment banking, private equity and venture capital. Many of the international hubs of multinational firms are very locally integrated and operate somewhat independently.
Career Advancement
Where Chinese financial industry is on its growth trajectory dictates career advancement. The general shape of the hierarchy is similar to the west, but the path and opportunities differs. There are many chances for junior and mid-levels to get meaningfully more client exposure earlier on than Western counterparts. In contrast with the Chinese Big Tech machine, junior levels are expected to take on more responsibility. The growth curve is accelerated. Similar to most industries, advancement is both relationship and results-driven. But unlike being a cog in Big Tech, loyalty can pay dividends.
Work Culture and Politics
Compared to the more established finance industry in the West, the local firms are still finding their footing in terms of processes and governance. The office politics and culture will reflect that dynamic as well as a Chinese style of working. For example, there are many committees and hoops to greenlight a deal in the West, but in China, the deals are more streamlined and can move much more quickly.
Relationships matter. But depending on the industry you are covering, the nature of how that plays out will differ. For example, real estate and deals with state-owned enterprises might result in many alcohol-fueled dinners. In tech and VC, there will be fewer instances.
Banking is notoriously known for its brutal work hours and facetime. China is no different and potentially even more strenuous. Deal calls can extend all the way until 12AM midnight. This is just a harsh reality of China speed.
Gender imbalance in finance and VC do exist but are not as exaggerated as mainstream media. On both the buy side and advisory, there are plenty of success stories and does not seem to be a barrier. Side note: While VCs are more gender balanced, female founders still face discrimination.
Considerations for Returnees or Diaspora
Especially in finance and client-facing work, language and cultural fluency is a must. While there doesn’t seem to be a noticeable bamboo ceiling for diaspora, inability to adapt to the unique deal culture can be a barrier to advancement. When considering when to move back, the decision can be bi-polar: either junior levels or very experienced. Many of the returnees or diaspora are well-pedigreed with top tier education and work experience.
Advice for New Grads
For new grads, there are many benefits to starting off with a bulge bracket: gaining pedigree, building relationships, learning deal processes. In addition, working in China can offer even more growth opportunities and client exposure than in the West.
Recruiting
Much like recruiting in the West, there are several entry points in the finance industry: undergrad or graduate school recruiting. Top tier universities in the West and in the East are target schools. Networking is still key. While lateral hiring does occur, the frequency is much less. At senior levels, there is executive level poaching via headhunters (and networking).
Acknowledgements
The information on this page was sourced from a April 2021 Clubhouse audio meetup. Many thanks to Rui Ma for serving on our expert panel.
If you are interested in helping our team source knowledge about life in Asia, please contact our team.