Daily Management Review

Bloomberg: Chinese and Wall Street are fighting for talented young people


Some Chinese hedge funds are raising starting salaries for promising college graduates as much as $300,000 a year to get them before American competitors. China has to compete for talent not only with Wall Street, which takes the best talent from the market, but also with local big businesses like Alibaba.

John Wisniewski
John Wisniewski
Chinese hedge funds are competing with Wall Street for talented computer science and artificial intelligence graduates, raising starting salaries to about three times the fees offered in the West, from $100,000 to $300,000 a year, Bloomberg writes.

According to the agency, the Chinese financial sector is experiencing a change in personnel policy: instead of seeking education in the U.S. with good chances to get into global companies and stay in America, some talented and promising young Chinese prefer to stay in their homeland. Meanwhile, investment companies have to compete for them not only with Wall Street, but also with local IT giants such as ByteDance (owner of TikTok) and Alibaba.

Young IT professionals are in particular demand in funds that apply computer models to their work, Bloomberg notes. The popularity of such funds is growing: the amount of assets under their management increased tenfold compared to four years ago and exceeded 1 trillion yuan ($155 billion), the agency cited data from Citic Securities Co. In addition to the increased financial capacity of the funds, the personnel policy is also affected by the pandemic: because of the closed borders, many talented young people postponed plans to study abroad. Such graduates are offered one-year internships.

Raising salaries for entry-level professionals is a global trend that goes beyond hedge funds, Bloomberg writes. The agency notes that starting salaries at leading investment banks have risen to six-figure figures in just a few months. For example, Goldman Sachs raised salaries for entry-level professionals by nearly a third in early August, from $85,000 to $110,000. Morgan Stanley also said Aug. 31 that it would raise junior professionals' salaries for the second time in a month - also to $110,000.

source: bloomberg.com