US firm Nixon Peabody has forged a formal agreement with ALB Hong Kong Law Awards 2010 Boutique Law Firm of the Year finalist Cheng Wong Lam & Partners this week as part of its push to establish a presence in Hong Kong.

According to a partner of Cheng Wong Lam & Partners, a healthy referral relationship had sparked off talks of a formal commercial collaboration several months ago.

“Essentially we see advantages in the two firms collaborating together, with potential referrals between the firms. In particular, Nixon Peabody value the importance of China as a growing legal market and they wish to expand their presence in the region,” Cheng Wong Lam & Partners partner James Griffiths told ALB in an interview.

According to Griffith, factors that led to the Hong Kong firm’s decision to cement the relationship include attracting greater deal flows of inbound Hong Kong and China-related work from various Nixon Peabody offices and access to Nixon Peabody’s 700 lawyers globally.

“It’s a commercial collaboration in the form of an association. There already have been referrals two ways,” Griffith said.

Hong Kong is Nixon Peabody’s second office in Asia. The firm also has an office in Shanghai which it opened in 2008. “Having a strong footprint in China is a critical factor in helping our clients achieve their strategic business goals,” said David Cheng, chair of Nixon Peabody’s China practice.

Cheng will split his time between Nixon Peabody’s Hong Kong and Shanghai offices.

Richard Langan Jr, CEO and managing partner of Nixon Peabody, believes China will be the largest market by 2020 and as client flows shift to the region, so should their services. “Lawyers from across our firm are already working closely with Cheng Wong Lam & Partners on current client matters. With our new Hong Kong office, we are expanding our capabilities to handle the most sophisticated inbound and outbound transactions across Asia,” he said.

Inbound China trade and investment, corporate finance, general commercial work as well as investment fund work are some areas that the two firms will be working closely together in the new collaboration formed.
According to Griffith, a merger has not been ruled out for the future. ALB

Hong Kong-US firm alliances

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