[Asia Economy Reporter Jo Yujin] Bloomberg News reported on the 17th (local time) that the major U.S. investment bank Goldman Sachs is undertaking unprecedented workforce expansion in mainland China and Hong Kong.
The news agency, citing anonymous sources, stated that Goldman Sachs will newly hire a total of 320 employees, including 70 investment banking staff in mainland China and Hong Kong. Of Goldman Sachs' global workforce of 40,500 employees, 28% work in the Asia region.
Since the end of last year, Goldman Sachs has been working to convert its joint venture securities firm in China, Goldman Sachs Gao Hua Securities, into a wholly owned subsidiary.
Goldman Sachs first entered the Chinese investment banking market 17 years ago by establishing Gao Xing Gao Hua Securities together with Beijing Gao Hua Securities in 2004. The company has now increased its stake in the joint venture from the previous 51% to 100% through this investment.
This expansion of investment by Goldman Sachs aligns with the opening of the Chinese financial market. As China opens its $52 trillion financial market, the competition for talent among global securities firms and asset management companies is heating up, according to the news agency.
In addition to Goldman Sachs, UBS Group, Credit Suisse Group, and HSBC Holdings also plan to hire thousands of additional employees in China.
Although the global investment banks' moves to enter China were slow last year due to the spread of COVID-19, the easing of COVID-19 and economic reopening are expected to accelerate the business expansion efforts of global investment banks as the financial market expands.
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