28 Asian Legal Business | November 2024 in Hong Kong shed the spotlight on regional mainland firms’ endeavours to secure a foothold in the Chinese Special Administrative Region. Director Yang Jie emphasises that this strategic move was primarily driven by the surging demand from clients pursuing global expansion. “Under the Belt and Road Initiative and the broader environment encouraging enterprises to go global, many clients from the Greater Bay Area and across the country are actively seeking to internationalise their business operations. Hong Kong, with its unique geographical location and status as an international business hub, has become a crucial bridge connecting mainland China with overseas markets,” Yang says. Yang noticed many of the firm’s clients have such business needs, leading it to open its Hong Kong office to better serve clients and support their international efforts. In a similar vein, Shanghai-based SGLA Law Firm, jointly established by several leading regional firms, has adopted an innovative “two-step” approach in Hong Kong. In mid-August, Hong Kong This current wave of expansion marks a shift from previous patterns. While earlier movements were primarily driven by marquee mainland firms from Beijing and Shanghai, specialising in overseas capital markets, the latest influx showcases a more diverse mix. Regional powerhouses, speciality boutiques, and firms focused on practices apart from capital markets and cross-border services are now at the forefront of this Hong Kong foray. The Law Society of Hong Kong reports that 35 mainland-based “foreign law firms” currently operate in the city. Additionally, 21 PRC firms have established joint ventures, with some successfully transitioning to full domestic practice status after a three-year joint venture period. Sundial Law Firm is a recent example of this evolution, highlighting the dynamic nature of Hong Kong’s legal market and its pivotal role in China’s global economic and industrial strategy. Driven by clients In July, Guangzhou-based Wang Jing & GH’s registration as a foreign law firm March of the mid-sized Mid-tier and regional mainland Chinese law firms are expanding into Hong Kong, driven by cross-border demand and Beijing’s global push. By Hu Yangxiaoxiao and Sarah Wong Hong Kong has always been a critical springboard for China Inc’s global ambitions, serving as a vital platform for China’s outbound investment and offshore wealth planning initiatives. However, Beijing’s recent concerted “going global” campaign has ignited a surge in demand for cross-border legal services, catalysing a new wave of PRC law firms entering the Hong Kong market. The past year has witnessed a flurry of expansion activity from mid-tier and regional mainland firms into Hong Kong. Shanghai-based Everbright, Zhenghan, and SGLA Law Firm have established a presence, alongside Beijing’s Docvit Law Firm. Firms from the Greater Bay Area, including Kingpound, Wang Jing & GH, and Zhuoxin, have also joined this expansionary spree. In a notable development, five firms in Sichuan – located in China’s traditionally secluded Southwest – have announced their entry into Hong Kong. Even boutique firms such as Shanghai’s Mankun and Beijing’s Zhinuo have unveiled plans to launch Hong Kong outposts, underscoring the geographical breadth of this scramble for a share of the Hong Kong market. • Regional PRC firms are entering Hong Kong for global expansion. • Dispute resolution is driving new demand in the Hong Kong market.
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