Jul 3, 2012

Want to follow in Jeff Urwin and Mark Schwartz's footsteps? Here's what you need

By Jing Yan

Global investment banks have been moving their top bankers to Asia. Key moves include J.P. Morgan’s Jeff Urwin, as global head of investment banking in Hong Kong and Mark Schwartz, Goldman Sachs’ first regional chairman on the mainland. Learn about top bankers' migration to Asia and how you can be one of them.
Published on eFC online news 

FT Goldman Sachs Book of the Year Award, Editor of the Financial Times, CEO of Goldman Sachs Group
Attribution Some rights reserved by Financial Times photos 

FT Goldman Sachs Business Book of the Year Award 2011
Mr Lionel Barber, Editor of the Financial Times, Mr Abhijit V Banerjee, winning Author, and Mr Lloyd C. Blankfein, Chairman and CEO of Goldman Sachs Group Inc

Jason Tan, director of financial services and banking, PSD Group, says: “Deals are scarce in US and Europe, while Asia and emerging markets are buoyant. Bankers are simply going where the money is. Asian sovereign wealth funds have a lot of money; this is another reason for the migration.”

The appointment of Schwartz in Beijing demonstrates the firm’s commitment to China. The veteran’s return indicates the scarcity of top bankers who have the required skills and experience for such senior mainland positions.

Asia experience

Sarah Xiao, head of Financial Service, North China, Talent2 Beijing, says: “First of all, Asian experience is a must, if someone has Greater China experience that would be a big plus.” She adds such candidates should have eight to 10 years of experience within the firm, familiarity with Chinese culture and extensive connections with enterprise, local government and regulators. Schwartz, once the chairman of Goldman Sachs Asia and president of Goldman Sachs Japan, certainly seems to fit the criteria.

What differentiates placement in Hong Kong and Beijing, might be the language factor. Xiao says: “Foreign banks should appoint local candidates as senior managers if they want to succeed in the China market, especially in investment banking. Most JV CEOs in China are Chinese, like UBS, J.P. Morgan and Zhong De Securities.”

Local vs Global

To do business in China, foreign investment banks need to strike a balance between localisation and maintaining their competitive edge. While local firms thrive on using connections to win deals, foreign i-banks need to emphasise their global knowledge and expertise in premium services.

Tan says: “Asia is quite distant from the euro crisis with China still in driving seat. There is very little reason why the top bankers are not in Asia. Pockets of growth lie in private wealth management, commodities sales and trading, as well as RMB-based cross border for corporate bankers.”