Hong Kong's banking talent shortage worsened by zero-Covid rules must be urgently addressed, industry association says

Hong Kong's banks face a severe talent shortage, as stringent quarantine and travel rules in a relentless pursuit of the city's zero-Covid policy have deterred visitors and cut off the supply of skilled labour for boosting the local workforce.

The shortage has worsened over the course of the last year, as the government's zero-Covid rules - from 21-day quarantines to school breaks and lockdowns - have begun to grind on many expatriate staff after two years, according to the Hong Kong Association of Banks (HKAB), which represents all of the city's 163 licensed banks.

"Hong Kong has always faced a problem of talent shortage in the financial industry, but the pandemic has worsened the situation," said Mary Huen Wai-yi, chairwoman of HKAB.

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"It is hard to recruit new talent to come [to the city], while international banks have also found it difficult to relocate their existing staff from other areas to Hong Kong [due to the pandemic]," said Huen, who is also the Hong Kong chief executive of Standard Chartered Bank.

Mary Huen is the chairwoman of Hong Kong Association of Banks and also the CEO of Standard Chartered in Hong Kong. Photo: Jonathan Wong alt=Mary Huen is the chairwoman of Hong Kong Association of Banks and also the CEO of Standard Chartered in Hong Kong. Photo: Jonathan Wong>

While the association has conveyed their difficulties to the government in a bid to address the problem, Huen said members were looking at stopgap solutions such as upskilling their existing staff to cover the talent gap in fintech, green finance and new energy developments.

Hong Kong's zero-Covid pursuit, including a quarantine period of up to 21 days even for fully vaccinated inbound travellers, has raised the ire of international business executives. Hong Kong has stuck to such tough rules for almost two years and has shown no signs of relaxing them, while many countries including Singapore and Britain, which have opted for living with the virus, have relaxed their rules.

In October, nine out of 10 members surveyed by the Asia Securities Industry and Financial Markets Association said that they found it difficult to operate in the city because of its restrictive Covid-19 policies, with nearly half saying they were contemplating moving staff or functions away from the city as a result.

The concerns about talent shortage raised by Huen were also highlighted in an Oxford Metrica report on Thursday, commissioned by the Financial Services Development Council, which promotes the city as an international financial centre.

"Given the additional impact of the pandemic, financial firms indicated that talent availability is a challenge that needs to be urgently addressed for Hong Kong to continue to enjoy its position as a world-class international financial centre," the report said, which surveyed over 30 major international players.

"The challenge will be to find ways to ensure that Hong Kong continues to be a popular posting for expatriates while at the same time attracting the best and brightest young graduates locally to join the financial services."

If the shortage continues, the cost of hiring expatriate employees is likely to increase significantly, the report said.

Hong Kong needs to address issues to remain a popular posting for expatriates, according to an Oxford Metrica report. Photo: Winson Wong alt=Hong Kong needs to address issues to remain a popular posting for expatriates, according to an Oxford Metrica report. Photo: Winson Wong>

US investment bank JPMorgan has lost some 20 managing director-level people in the city in the past year, or about 10 per cent of its staff of some 200, the South China Morning Post has learned.

Jason Kennedy, the founder of London-based recruiting firm Kennedy Group, said the quarantine restrictions put in place by the city have made it a less attractive location for expatriates.

As a result, expats were moving to Singapore or returning to Europe or the US, he said.

"Anyone who is a foreigner who comes to work in Hong Kong feels trapped," Kennedy said. "They can't see their families. They haven't seen them in two or three years. There's a homesickness issue, a lack of travel issue."

This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2022 South China Morning Post Publishers Ltd. All rights reserved.

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