In Shanghai, new traders-positions stay unfilled for weeks

From London to New York, currency traders are clearing their desks as business evaporates. In Shanghai, new positions stay unfilled for weeks and prized experts are encouraged to put in overtime.

Frank Zhang, head of foreign-exchange trading at China Merchants Bank Co. in the nation’s financial capital, has been trying to hire three traders since Oct. 16. The local talent pool is too small, he says.

“It’s not easy finding people with a strong foreign-exchange trading background here,” said Zhang, whose desk now comprises of 15 people.

Chinese lenders are scrambling to strengthen their trading desks as the International Monetary Fund prepares to include theyuan in its reserves basket.

Shanghai Pudong Development Bank Co. is hiring three traders to cover both currency and fixed-income, Bank of Nanjing Co. plans to add two to its currency desk and Bank of Ningbo Co. wants another 30 people for its financial markets department. By contrast, Credit Suisse Group AG is laying off 200 traders in London. Deutsche Bank AG, Societe Generale SA and Standard Chartered are trimming staff in New York, France and Dubai.

Big banks in China on average raise salaries by 6-7 percent every year, while those in the U.S., Singapore or Australia usually offer only 2-3 percent, according to Michael Page. Demand for traders will continue to be robust at least in the short term.

Chinese lenders have recently increased efforts to extend their operations, including to London, which accounts for 40 percent of global foreign-exchange trading and is seeking to become Europe’s offshore yuan hub. China’s yuan internationalization push poses a human resources challenge to the local financial industry.