Lawyers in China, the “red circle”, is suspended partners of American competitors

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The major law firms in China are employing more senior international competitors, as Western law firms have expanded their existence in Hong Kong and China after the slowdown in financial activity.

More than ten American law firms such as Latham & Watkins, Sidley Austin, Weil and Gotshal & Manges Closed offices In Beijing or Shanghai in recent months, the integration and purchases and capital markets in China have succeeded. The American Lawyer Winston & Strawn is the latest that closes its office in Shanghai, after its branch in Hong Kong closed last year, leaving the company that there is no office in Asia.

This has given an opportunity for the largest and most important Chinese law firing companies known as the name “Red Circle”. They are increasingly looking for business outside the mainland, including in Hong Kong, with the help of adult tenants and aggressive drawings, and sometimes more than half of Western competitors.

The increasing ambition of the Chinese Lawyer companies It reflects the changing nature of the Hong Kong Market, as Chinese companies prefer secondary lists in the region instead of external and Western law firms that once obtained Hong Kong fees from Chinese names.

Over the past year, Chinese legal companies have recruited at least 14 lawyers and partners of their counterparts in the United States and the United Kingdom, including Kirkland & Elis and Paul Hastings, employees and attorneys, some of whom bring their team with them. Most of them are in Hong Kong and focus on capital or financing markets.

“There is a noticeable trend for partners from international law firm, especially American companies, which are transmitted to the best Chinese law firing companies in the Greater China region, including Hong Kong, during the past six months,” said Warren Hwa, an administrative partner in the law offices.

Gary Li Li, Hong Kong Special Stock partner, moved from Kurchland to Chung Lone, a 10 best company in February. Wanda Woo partner, WOO’s partner, is also based in Hong Kong, from A & O Shearman to Jia Yuan Law offices in October.

“We have moved because we believe this (Chinese companies) is a more vital aspect of the market,” Wu told the Financial Times. She brought a team of nine lawyers with her from A& O Shearman.

Of the 70 new lists in Hong Kong last year, Chinese law firms were the main adviser to exporters by 20 percent of them – a traditional area dominated by international companies – according to 15 percent lawyers in 2018.

The region has been appointed to enjoy Reviving lists of $ 20 billion This year, where Chinese companies give secondary lists in the city. Wu said: “The Hong Kong Capital Market is full of Chinese exporters.” “For them, they feel that.

Felix Lee, the first director of Hong Kong at the SSQ Legal Employment Agency, said many of the international law firm partners are also struggling to attract business in part, “given the lack of flexibility to control shipping prices.”

A lawyer recently moved from an American company to a Chinese law firm, that the best American law firmer receives a “expensive” rate every hour in the world. He said: “Every hour was about 1,600 dollars (in the previous American company) … this type of price per hour was not acceptable to Chinese clients.” “Now that you are with a law firm (Chinese), the price is $ 500 … and this gives us a great advantage.”

A senior partner in an American company based in Hong Kong said, although he acknowledged that many of the largest American law firms have reduced their mark in Asia due to “profitability mismanagement compared to the United States, geopolitical issues and dealing with historical luggage such as long -term guarantees to ensure partners who do not eventually perform.”

He added that many Chinese law firms still “do not have the full infrastructure to carry out the appropriate public subscription work that involves American law or dealing with American organizers effectively – a legal consultative area often required by companies that subscribe to subscription in Hong Kong.

“Before, many international law firm law partners will say” no “for Chinese law firms.” “But they are now forced to consider Chinese companies because they no longer lead (the same level) of the business they used to bring (in American law firms).”