Vacancy activity in Hong Kong's professional practice market is booming. But where are the hotspots and who is in most demand at present? The Hays Quarterly Forecast, a guide to activity over the coming quarter, explores these issues and Emma Charnock, Regional Director of Hays Accountancy & Finance in Hong Kong, here discusses the main findings.

PRC growth, expanding headcounts and strong economic growth are creating continual requirements for quality candidates both locally and from overseas for Hong Kong's professional practice accounting market. This steady growth is lifting candidate demand across the board, although there are particular hotspots of vacancy activity.

Risk advisory (financial and information technology) is one, with tax consultants and managers across corporate and individual tax (particularly PRC and HK tax) also required since regulatory, Sarbanes-Oxley and reporting standard changes have increased the requirements of accounting firms' clients.

Auditors are another hotspot of demand, with expansion across China continuing to fuel this need in all sectors and the movement of candidates with three years or above experience into commerce continuing. The big 4 in particular have substantial hiring needs and in most demand are candidates at t he senior and management level, while those with financial services or insurance industry experience are also a hotspot of demand.

Within the banking sector, an increased focus on regulation from within the industry as well as from external regulators is heating demand in internal audit, compliance and regulatory reporting. There is also a shortage of candidates with specific IFRS experience, as international companies require candidates to meet international reporting standards. Product controllers have emerged as a hotspot, with the majority of banks expanding their functions in this area.

At the executive level, professional practice vacancy activity is limited, with the largest needs existing at the senior and manager level. Most firms advance the careers of their senior staff internally, promoting from within for the roles of senior managers, partners or directors.

Executives are however in demand for the banking sector. Those with banking specialist knowledge are in particular demand. This trend is likely to continue over the coming quarter until the end of 2007 and a shortage of local quality staff will see employers conduct international recruitment campaigns.

In terms of salary movements in the third quarter of 2007, salaries are likely to remain stable across the profession, particularly within the big 4. There may be some movement in October when the majority of the big 4 have their annual reviews. However banking sector salaries are likely to increase due to a strong and buoyant market and the ongoing shortage of skills.

However over the past year salaries within the profession have gradually risen to become more equitable with those offered in commerce. Promotions or the opportunity to transfer within the firm have increased as firms seek to retain their good staff. These firms are also financially strong and are growing, with bonuses therefore better than expected.

The full Hays Quarterly Forecast

Source: Hays Hong Kong