1. The nine skills you now need to succeed in
Chinese investment banking
by Simon Mortlock
20 May 2016
Shanghai skill sets
Chinese investment banks are dominating revenue league tables in Asia, while some
Western firms (most notably Credit Suisse) are still trying to expand in the mainland.
But succeeding as an investment banker focused on Chinese clients is far from
straightforward.
These are the skills that investment banks in China are demanding from front-office
candidates.
1. Connections / guanxi
Investment bankers in China rely on their client connections as much as private bankers do
in other markets. “The number one thing you need is guanxi,” says Jason Tan, a partner at
search firm Carlson Harriet in Shanghai. “You need the WeChat of billionaires like Jack
Ma, Pony Ma, and Guo Guangchang to do serious investment banking in China.”

2. 2. Long-term relationship management
“To succeed as a dealmaker in China, guanxi is a prerequisite – but you also need
the ability to cooperate with clients on an ongoing basis,” says Stanley Soh, a Hong
Kong-based regional country director of financial services solutions in Asia. “As
most private enterprises in China are managed by one individual, winning their trust
and friendship is paramount to deal generation.”
3. Cross border skills
“With more Chinese enterprises looking outwards for M&A, having global experience
to advise on cross-border merger trends is becoming more essential,” says Soh.
4. Explanatory skills
China doesn’t have a long history of investment banking and your clients may have little
experience of listing on the stock market or acquiring new assets. “So business owners in
China expect their investment bankers to be more down to earth than those in mature
markets,” says Stephen He, a partner at recruitment agency in Falcon Talent in Shanghai.
“You must be able to fully explain business models in non-technical language, so clients
understand the requirements.”
5. An overseas education
“Modern Chinese investment banks like China Renaissance are becoming more agile and
faster in their dealmaking,” says Tan. “And if you look at their mid to senior ranks, they’re all
local talent, mainly with an overseas education. It’s not quite at the level of Goldman Sachs
or Morgan Stanley, but they have some form of education from the top universities globally.”
6. Or an elite local one
If you haven’t studied overseas, you must have a degree from an elite domestic university
rather than a second-tier one. “The top school network is very influential in China,” says
Hubert Tam, managing partner at search firm Sirius Partners. “It’s important to attend the
likes of Tsinghua University, which is like the Harvard of China – only the supreme students
are admitted.”

3. 7. Technical expertise
“Given the maturity of international markets compared with Chinese ones, investment
bankers in China aren’t likely to be as experienced in terms of deal history and modelling
skills,” says Alistair Ramsbottom, managing director of Shanghai search firm The Blacklock
Group. “But this is rapidly changing. Western i-banks in particular demand a more rounded
technical skill set from candidates.”
8. Political nous
“The strong influence of the government in China, in addition to clients’ typically
high expectations, creates a unique working environment for investment bankers.
Bankers have to understand any political motivations and manage clients’ deal
expectations,” says Soh. “In China you need the ability to deal with a more complex client,
office and political environment, particularly because there’s less transparency in the whole
banking and deal process,” adds Ramsbottom.
9. Regulatory knowledge
“Investment bankers working for Western firms in China face a much more difficult
regulatory environment than those at local firms. They often have to focus much more on
regulatory matters and they don’t always have as much freedom to operate as they would in
other markets.”
Source: http://news.efinancialcareers.com/hk-en/245106/skills-needed-in-chinese-
investment-banking/