How will Hong Kong banks handle talent shortage and tight budgets?
Investment analysts and compliance specialists remain most sought after.
Hong Kong banks are expected to hire selectively in 2026 as companies manage a talent shortage alongside tighter salary budgets.
Finance, accounting and banking roles were the hardest to fill in 2025, cited by 27% of 150 employers surveyed by Ambition Group Hong Kong Ltd.
Hiring remained active but focused, particularly in front-office roles tied to revenue generation, according to recruitment firm Morgan McKinley Ltd.’s Hong Kong salary guide released in February.
“We have seen a slight uptick in front-office hiring at junior to mid levels, particularly where teams need revenue support and faster execution,” it said.
A rebound in initial public offerings (IPO) drove recruitment in deal support, transaction operations and compliance, Ambition said in its February report. The rebound also revealed skill gaps caused by earlier hiring freezes.
“Institutions will continue prioritising roles that strengthen regulatory compliance, operational resilience, and capital market activity,” it pointed out.
Morgan McKinley said investment analysts and compliance specialists remain the most sought-after positions, whilst contract roles are increasingly used in risk, operations, and change management.
Talent shortages in compliance, risk and digital operations are expected to persist this year.
Tighter salary budgets are also shaping hiring decisions, with employers focusing on mid-level roles to control costs whilst maintaining operational needs, Ambition said.
Despite budget discipline, Morgan McKinley expects average salaries in Hong Kong to rise this year.
Across sectors, demand for skills in artificial intelligence, data analytics, cybersecurity and cloud computing is projected to remain strong, it added.
Questions to ponder:
- Which roles and skills are likely to see the strongest demand in Hong Kong’s banking sector this year?
- Will tighter salary budgets slow wage growth for top talent, or will competition keep salaries rising?
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EXPERT OPINION
We're seeing renewed hiring activity across the financial services and banking job market, with Hong Kong in the midst of an IPO boom and strong equity market performance. This optimism is creating opportunities across various roles, particularly in areas tied to equity capital markets and IPOs. While banks remain mindful of cost efficiencies following periods of overexpansion in 2021 and 2022, there’s a noticeable uptick in live roles coming to market. On the candidate side, professionals are gradually regaining confidence but remain selective about career moves.
We're seeing strong demand for private banking relationship managers, equities trade support and investor relations. Roles in equity capital markets and IPO positions, especially at the junior end, have been emerging. On the buy-side, hiring activity is picking up as equity markets in Hong Kong and mainland China have performed well. Assets under management have grown, generating a bit more money to spend on potential investment professionals and traders. We're not talking about a massively significant increase in hiring, but it's noticeable.
Compared to the first quarter, we've seen about a 20% uptick in live roles coming to market, but that hasn't translated into the same rise in offers. Confidence is still lacking. The challenge is crossing that tipping point for banks to justify the hire and for candidates to accept offers. Banks still see it as a buyer's market and are holding out for near-perfect candidates, but that expectation isn't realistic. Hopefully, as we work through this, there'll be a greater degree of flexibility and realism in hiring criteria.
Salary expectations and employer budgets also remain misaligned. Job seekers are increasingly prioritising job security since 2023 and are seeking double-digit increments to justify a move. Hiring managers often assume there's an abundance of talent, but the reality is quite the opposite. Many strong candidates are still prioritising stability and are hesitant to move without a compelling offer. This gap is prolonging hiring cycles and making it harder to secure top talent.
Looking ahead, we'll likely see a more functional market with more hiring. It'll be a slower but steady recovery, with probably a 10-15% increase in the amount of hiring across financial services in the coming year. For contractors, increments could reach 20-25%, depending on the role.