In 2018, a global financial centers index compiled by UK independent think tank Z/Yen showed that Shanghai ranked fifth among all international cities, or one position higher from that in 2017. While a large number of leading fintech companies have set up in neighboring city Hangzhou, capital of Zhejiang province, some of them are also moving or opening branches in Shanghai, given the latter's importance in the international financial industry. One of the best examples is e-commerce giant Alibaba's payment arm Alipay renting office spaces in Shanghai's Lujiazui area, said Meng Tian, deputy director of the fintech research institute at Shanghai University.

Shanghai's longtime advantages in the financial industry, including a talent pool in Lujiazui and close ties with international markets, provide the ideal environment for fintech startups, said LeGain Group president Wang Wei. Wang set up the fintech company in 2015 in the city.

"Even the local residents here have shown a deeper understanding of investment. They can accept diverse offers of financial products, which indicates more opportunities for startups," Wang said.

Investment in the development and retention of talent is crucial for financial institutions in Shanghai if they are to meet the city's long-standing financial ambitions, according to global recruitment specialist Hays.

In corporate banking, candidates for trade finance, global markets, security, services, custodian and operations positions are in high demand. Senior investment bankers with experience in A-share capital markets are also highly sought-after, with shareholding ratio limits for foreign investors in China being lifted in 2017, according to Hays.

While asset management and custody services for qualified foreign institutional investor and renminbi-qualified foreign institutional investor clients are on the rise, custodian banks are increasing their headcount for both front and back office roles, as Hays found out.

Apart from senior and mid-level positions, the recruitment firm suggested talent preparation at the junior level, as banks and financial institutions will demonstrate huge demand for junior candidates in relationship manager and sales roles.

Many foreign institutions have set up their regional headquarters in Shanghai since 2006, according to Simon Lance, managing director for Hays, Greater China. The gap concerning the gross annual remuneration packages among employees in Shanghai, Hong Kong and Singapore has narrowed, especially for front office roles.

However, due to high individual income taxes, there remains a noticeable difference in net annual income between Shanghai and its regional peers, Lance said.

shijing@chinadaily.com.cn