24 Asian Legal Business | December 2024 Cover Story State of the Market 2024 In 2024, Asia’s legal markets remained in flux. On one hand, Singapore stood tall as a neutral arbitration hub, Indonesia’s booming economy beckoned global firms, and India’s legal scene sizzled with talent wars and ambitious expansions. And Saudi Arabia led a Middle Eastern renaissance, shaking up the region with bold reforms. At the other end of the region, Hong Kong continued to reel from a tidal wave of firm downsizing and exits as it grappled with a profound crisis of confidence. But not all hope is lost, as growing southbound interest from mainland China began to offer a lifeline to Hong Kong’s beleaguered legal market. By Sarah Wong and Nimitt Dixit Hong Kong: Changing of the guard The year 2024 was one where Hong Kong’s legal marketplace took no prisoners. Battered by the prolonged economic malaise of China – which saw more than its own share of departures this year - international law firms that once touted their unwavering commitment to Hong Kong began cutting back in droves. One notable example of the year was the split of Chicagobased Mayer Brown from its local partner Johnson Stokes & Master, which reemerged as an independent brand after a 16-year hiatus. Also calling it quits were Philadelphia-headquartered Dechert and Chicago-based Winston & Strawn, accelerating a streak of exits set in motion since last year. “2024 did not represent a seismic shift in the market,” says Chris Lambert, managing partner at Hong Kong firm Robertsons. “Rather, it underlined that many of these tensions are here to stay for quite some time to come.” With the investor pool restrained, sentiments dim, and prospects of returns cloudy, Hong Kong struggled to make a comeback as Asia’s premier financial hub. “A lot of the deals that are being done are of smaller size and less complex. We can see that having an impact on the legal services market here in Hong Kong,” says Matt O’Callaghan, Hong Kong managing partner at magic circle firm Freshfields. It will probably take more than sporadic bouts of pickups in fundraising or positive signals from the central government to convince businesses to return in numbers. For all of Beijing’s policy support for offshore listings, companies still grapple with evolving sanctions regimes and heightened regulatory scrutiny, leaving law firms at the mercy of increasing volatile global risks. “There’s rarely been so many emerging considerations impacting operational resilience,” says Gareth Hughes, Hong Kong partner at New York-based Debevoise & Plimpton. For American firms, in particular, those primarily serving a U.S. client base with a business model focused on inbound and
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