Hong Kong IPO boom sparks finance hirings but staff cuts have not gone away - SCMP

Hong Kong IPO boom sparks finance hirings but staff cuts have not gone away - SCMP

Hong Kong IPO Boom Drives Finance Hiring, Yet Staff Cuts Persist Amid Talent Challenges

Hong Kong’s financial sector has seen a modest hiring surge amid a revival in initial public offering (IPO) activity, though cost-cutting measures by some firms continue to temper overall growth, according to recent reports. As of September 2025, the city’s financial sector added approximately 4,800 jobs over the past year, bringing total employment in banks, asset managers, and brokerages to 204,000—a 2.4% increase from 199,200 in 2024. However, this figure remains below the 2021 peak of 287,800 and reflects ongoing cost discipline by certain institutions.

The hiring uptick is largely attributed to a robust IPO market, which has rebounded strongly in 2025. Hong Kong’s stock exchange raised HKD286.3 billion through 114 IPOs in 2025, a 226% increase in proceeds compared to 2024. Deloitte China forecasts the market to surpass HKD300 billion in fundraising in 2026, driven by reforms, international fund inflows, and listings from technology, healthcare, and consumer sectors. Chinese banks, however, face a talent crunch as demand for IPO-related expertise intensifies.

While some firms expand teams to meet surging demand, others prioritize cost control. The broader financial and insurance sector added 6,700 jobs in the same period, but employment remains below pre-pandemic levels. Analysts note that geopolitical tensions, U.S. monetary policy shifts, and regulatory changes—such as Nasdaq’s proposed stricter listing rules— could introduce uncertainties for Chinese companies seeking overseas listings.

Deloitte’s report highlights that Hong Kong’s IPO success hinges on capital market reforms, including streamlined listing processes and enhanced liquidity measures. However, challenges persist, with Chinese banks under pressure to balance talent acquisition with operational efficiency amid a competitive market landscape.

As the city positions itself as a global IPO hub, stakeholders emphasize the need for strategic hiring and regulatory adaptability to sustain growth while navigating macroeconomic headwinds.