FT.com / World Reports / Hong Kong 2005 - The mainland: Waiting for the moment to go home

The mainland: Waiting for the moment to go home
By Fang Wang in Hong Kong
Published: September 19 2005 16:53 | Last updated: September 19 2005 16:53
When Zheng Xiaofeng decided two years ago to leave the US where he had studied and worked for four years and return to his motherland with a Master’s degree in finance, he considered two cities: Hong Kong, the traditional financial hub of Asia, and Shanghai, the booming mainland city that promises to become another regional centre.
The choice, however, was not a difficult one recalls 28-year-old Mr Zheng, who specialises in the design of financial derivatives. “I picked Hong Kong because there was no job for me in Shanghai. Financial engineering was still too new a concept.”
Now working in the Hong Kong office of a global investment bank, Mr Zheng feels happy about his choice. “[Compared with working in Shanghai] here I earn a bigger salary, the working environment is more professional, the air is cleaner, and I enjoy much more freedom.”
Mr Zheng is among a new wave of young mainland Chinese, typically with an overseas education, flocking to Hong Kong to seek professional careers. China’s economic growth acts as a magnet, attracting a rapidly rising number of overseas returnees. Its internal transformation, however, is not fast enough for it to provide what these elites usually demand: competitive salaries, an international working environment, challenging jobs and freedom of expression.
This makes Hong Kong, which only a few years ago was quite low on the list of favourite destinations among young Chinese high-flyers, an increasingly popular choice. Retaining a capitalist democracy and with sophisticated financial and service industries, the city is as developed and international as New York and Tokyo, while its proximity to the mainland makes it a convenient observation spot for those waiting for the right time to return to the mainland.
“Many of us with overseas education will go back to China one day, but not directly, not now,” says Kuang Xia, a 28-year-old mainlander working for an investment bank in Hong Kong. “We are no longer used to the way people think and the way things are done back in the mainland. Hong Kong is much more international. It is like a buffer zone.”
The territory’s increasing economic integration with the mainland, more amicable political relations and lower policy barriers all add to its appeal to mainland Chinese. The former colony, whose border used to be almost completely closed to mainlanders, has gradually relaxed restrictions since its return to China in 1997. But the gate was thrown wide open when the government launched a non-quota mainland talents admission scheme in 2003.
In the following two years, more than 7,300 mainlanders have been granted visas to work or study in Hong Kong. Among them, more than half are conducting academic research in educational institutes, while others work in a variety of industries ranging from financial services and trade to arts and biotechnology.
Although mainland Chinese still only account for a small part of Hong Kong’s workforce – the territory boasts an expatriate community of more than 500,000 people – its expansion is, however, rapidly gaining momentum.
“Hiring mainland talent is definitely a trend among Hong Kong companies,” says Chris Liu, general manager of the Hong Kong office of Ketchum-Newscan, the public relations company. “As the territory’s economy rebounds, the battle for talent is intensifying. Mainlanders have provided a much needed talent pool.”


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Mr Liu, whose office has hired three mainlanders recently, says these people have a few clear advantages: their better understanding of the Chinese culture and consumer markets, extensive business networks in their home cities and better mastery of Mandarin, the official Chinese language. Their overseas study experience also means they can quickly adapt to western-style corporate cultures.
The surge in demand for mainland talent partly reflects a structural shortage of qualified Hong Kongers. The territory has only eight universities, with college graduates accounting for less than 20 per cent of its population, compared with 30 per cent in New York. Many employers also complain that some virtues of the older generation, such as diligence and a strong sense of responsibility, have been fading from younger people in recent years.
Employers such as Mr Liu are increasingly finding such virtues in mainlanders. “Their global perspective and sense of market may be weaker than Hong Kongers, but their keenness to learn new things and their passion for work are much stronger,” he says.
For many young Chinese, as competition in schools and job markets intensifies, Hong Kong also offers an opportunity to escape the mainland’s rigid talents selection system.
Terry Wang, 27, was working as a secretary at an international brokerage in Beijing before she was transferred to the company’s Hong Kong branch last year. Although the nature of her job remains the same, she says the move had completely changed her life.
“On the mainland, everyone looks at what kind of diplomas you have but here people look at your real capabilities and skills.” she says. “On the mainland, I was just an ordinary secretary, but here I feel I have a lot of room for development.”
Although Hong Kong may provide a wonderful opportunity for career building, most mainlanders view it as a temporary, or transitional, place to live. Its highly developed and saturated services industries offer few opportunities to spot niche markets where profits remain high. In this respect, less developed mainland China provides more opportunities.
“When I’m ready to set up my own business, I will go back to the mainland,” says Ye Xiaofei, a securities analyst at an international investment bank. “In Hong Kong we only work for others.” But employers seem unconcerned. “Hong Kong has always been a highly fluid society,” says Mr Liu. “We know they will not stay forever but we should make the best use of them. It’s a long-term investment for companies that eye expansion on the mainland.”
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