Recruiting in China

HONG KONG -- Hong Kong banks and financial-services companies are leading the way as the city's employers step up hiring and say they are willing to pay more money to retain staff, according to a report by a recruitment firm.

The survey of about 500 company executives found 59 percent plan to hire for new positions in the second quarter, compared with 14 percent a year earlier, Hudson Global Resources (Hong Kong) Ltd. said. Hudson said 73 percent of employers in banking and financial services expect to hire more workers.

Hong Kong's jobless rate fell to a 15-month low in the first quarter, supporting consumption and economic growth, as the “labor market remains robust,” Matthew Cheung, secretary for labor and welfare, said last month. HSBC Holdings Plc, China Construction Bank (Asia) Corp. and BOC Hong Kong (Holdings) Ltd. have recently said they are hiring.

“Along with a recovering economy, with improvements becoming more broad-based, we expect the jobless rate will drop further this year,” Kelvin Lau, Hong Kong-based economist at Standard Chartered Plc, said Thursday in a phone interview.

Two-thirds of respondents said they are willing to offer more money to employees trying to leave for another company, Hudson said. More companies raised salaries in the first quarter than a year earlier, the Hong Kong Institute of Human Resource Management said May 10, citing the results of another survey.

Hong Kong's economy grew for nine consecutive months through December after a year-long recession. It reports first- quarter economic data tomorrow.

HSBC is joining rivals including Standard Chartered in expanding businesses that target wealthy clients in the region. HSBC aims to recruit more than 300 relationship managers and sales staff in Hong Kong in “a fairly competitive market” for hiring as competitors are also looking for talent, Francesca McDonagh, head of personal financial services for Hong Kong at HSBC, said last month.

China Construction Bank (Asia) , a unit of the country's second-largest lender, plans to hire as many as 400 people in Hong Kong this year as the bank opens about seven more branches in the city. BOC Hong Kong and its units are seeking to employ 200 people, the company said in April.

“The job market recovery remains strong,” said James Carss, a Hong Kong-based general manager at Hudson, in the report released earlier this month.