Here's the deal with local pilots. CX benfits from both sides by hiring these guys. They look good in the eyes of the govt because they are giving something to the community and they also reap the benefit from the relatively cheap cost of training and paying these so called locally employed pilots (LEP's). Do the math. These blokes get the same pay as expat SO's but they wait 3 years for JFO upgrade and they get bugger all in the way of housing, education, or any other allowances. Cheap? I think so.
As for getting the candidates. Look at the life and expectation in Hong Kong. People want jobs that are "prestigeous" and that are going to give you a fat check and a BMW. ie. Accountancy, banking, lawyer. Have a look out of your taxi window next time you're in Central, that's why they can't get the applicants. Also, most who have the dream of flying have already buggered off to do it elsewhere as there is no other feeder for flying in HK. No GA, no airforce, nothing.