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International law firms are setting up
in Hong Kong to service booming sectors such as in IPO and finance (photo: EPN)
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The number of international law firms in Hong Kong has almost doubled, from 34 to 69, since 2004, according to the Law Society of Hong Kong. More are set to follow. Many are servicing the booming IPO sector, which saw 69 new listings in 2009, raising a total of US$31.5 billion, according to Ernst & Young data. The law firms are also servicing the booming finance, fund management and mergers and acquisitions’ (M&A) sectors.
Construction is another thriving business arena for law firms. Major Chinese mainland construction companies using Hong Kong as their base to build infrastructure worldwide pay more attention to legal-risk management. Lawyers are also needed for arbitration, which has grown from nine cases when the Hong Kong International Arbitration Centre was formed in 1985, to more than 600 cases last year.
“Hong Kong has become the battleground for the world’s law firms. This is where the action is,” William Barron, Partner at Davis Polk & Wardwell LLP’s Hong Kong office, told Bloomberg recently.
Regional Hub
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Catherine McGregor, Managing Editor, Chambers and Partners
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The latest to arrive is United Kingdom-based Chambers and Partners, publisher of world guides for leading lawyers and legal firms. It said Hong Kong made an "obvious base" for its first international presence. The firm's Hong Kong office, which opened in May with 11 staff members, will also be the new home of its Chambers Asia research guide.
“Hong Kong is a central hub for the Asia-Pacific region geographically, in terms of transport links, and also as an economic and legal hub,” said Catherine McGregor, Managing Editor. “We felt Hong Kong was an obvious base from which to research the whole of Asia, as it provides easy access to the Chinese mainland, Southeast Asia, India and Australia.
“The fact that it’s Chambers’ first overseas office emphasises the importance of the Asia region to us and highlights how our coverage of the Asian legal market is a central part of our business strategy.
“It also allows us access to staff that really know the region and have the level of language skills necessary to get the most up-to-date, accurate information possible. For example, our Asian team includes employees who speak Mandarin, Japanese, Korean, Malay, Hindi and Cantonese.
“Six out of our 10 researchers in Hong Kong are Mandarin speakers, allowing us unprecedented access in our research for the Chinese domestic legal market and Chinese clients.”
Growing Potential
Ms McGregor noted the growing potential for international law firms in Hong Kong. She said increasing numbers of foreign lawyers are trying to take the Hong Kong bar exam, in part to gain access to the Chinese market.
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Yang Jinzhu, Partner, Dacheng Law Offices
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“Hong Kong makes an excellent hub for firms to serve all of Asia, including the vibrant and growing economies of Southeast Asia, such as Indonesia, and also to work for Indian clients.
“The continuing importance of the Hong Stock Exchange for listings of Asian companies, particularly Chinese ones, can not be underestimated for international law firms. And Hong Kong is establishing itself as a significant centre for dispute resolution for the whole of Asia.”
Mainland Springboard
Beijing Dacheng Law Offices, the largest-scale law firm in Asia, opened in Hong Kong in May, via a merger with fellow mainland law firm Guangdong Xin Yang. The firm, according to Dacheng Partner Dr Yang Jinzhu, was capitalising on Hong Kong’s attractiveness for mainland companies looking to go global. “Hong Kong is a bridge between the international and mainland capital markets, so it’s important that we’re here,” he said.
Dr Yang said the firm offers services in project development and project finance, public and private finance initiatives, IPOs in China’s International Board for overseas listed companies, overseas listings for China-based companies, and follow-on offerings or private placements of equity, M&A and family-owned business governance.
Australian Presence
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Stuart Clark, Chief Operating Officer and Head of International Services, Clayton Utz
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Australian law firm Clayton Utz brought its construction and major projects’ expertise to the region with the opening of a Hong Kong office in April. The practice was launched in association with one of the market’s leading construction lawyers, Glenn Haley, practising as Hayley & Co.
Clayton Utz' Managing Partner, International Services, Stuart Clark said establishing a formal presence in Hong Kong was a logical step for the firm, which has operated in Asia for many years.
"The opportunity presented itself to form an association with Glenn Haley, widely regarded in Hong Kong and throughout Asia as one of the market's foremost projects’ lawyers, and enhance our front- and back-end construction and major projects capability in the region. We have also been undertaking international arbitration work in the region for many years under the leadership of Doug Jones. Having a permanent presence in Hong Kong will enhance our ability to provide services to both our domestic and international clients in this area.”
Clayton Utz Chief Executive Partner David Fagan said the Hong Kong initiative marked an exciting development in the firm's international strategy. "We see significant opportunities to capitalise on our strengths in Asia."
The firm’s Hong Kong office is overseen by Colin Dodd, Clayton Utz’ Major Projects partner. In addition to several lawyers who have been recruited locally, the office will have the full support of Clayton Utz lawyers across the firm's six Australian offices.
Cayman Connection
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Everton Robertson, Partner, Thorp Alberga |
Another recent arrival is Thorp Alberga, a Cayman Islands’ boutique law firm. Partner Everton Robertson said Hong Kong serves as an important market for offshore transactions, especially for pre-IPO financings and IPOs. It serves as a focal point for doing business in Asia generally, and the mainland in particular.
“The firm views Hong Kong as an important market itself and as a natural gateway to China. Three of Thorp Alberga’s partners have been based in Hong Kong since 2000, and have an in-depth knowledge of transactions and structures in the Asia-Pacific region, as well as extensive connections here. As such, Hong Kong was a logical choice for Thorp Alberga’s first foreign office.”
Thorp Alberga Partner Harriet Unger added that Hong Kong “is one of the world’s best examples of an open market economy. This, coupled with its geographic location, rule of law and the general ease of doing business here, means that Hong Kong is the ideal base to serve Asian markets generally and China especially.”
Related Links
Chambers and Partners
Clayton Utz
Dacheng Law Offices
Thorp Alberga
