4 Asian Legal Business | November 2024 Briefs 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. 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 March of The Mid-Sized 战略考量下， 内地律所加速香港布局 and cross-border services are now at the forefront of this Hong Kong foray. In July, Guangzhou-based Wang Jing & GH’s registration as a foreign law firm 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. 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, it announced the establishment of a foreign law firm office while simultaneously entering into a joint operation with local firm Lu, Lai & Li. Zhou Bo, one of the founders of SGLA’s Hong Kong office and chairman of the firm’s National Executive Committee, attributes this decision to both policy encouragement and the firm’s rapid internal growth. A shifting market SGLA’s Zhou, drawing from extensive discussions with industry peers during the establishment of their Hong Kong office, observes a shifting landscape spearheaded by a surge in demand for dispute resolution offerings. “Starting from 2023, more PRC firms are opening offices in Hong Kong, and some of these firms are not focused on capital markets or transactional matters but are instead specialising in dispute resolution. The demand for Hong Kong-related legal services in this area has been increasing, and I believe the practical business needs are driving everyone forward,” Zhou tells ALB. Despite Hong Kong’s capital markets experiencing a lull over the past two years, Zhou notes persistent client needs in this sector. Additionally, he has spotted burgeoning demand and business opportunities in areas including wealth inheritance and management. But dispute resolution, mainly related to previous cross-border investment and financing projects, is the one area these law firms are putting heavy bets on. “Mainland clients are increasingly seeking litigation in Hong Kong, arbitration at the Hong Kong International Arbitration Centre, or the mutual enforcement of judgments and arbitral awards between the two regions,” Zhou says. And with Beijing turbocharging its push for Chinese firms to “go global”, many companies making their first foray into international markets have favoured Hong Kong as a strategic gateway. Its familiar yet international business environment BIG STORY 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 受跨境业务驱动，内地中等规模及区域律所正加速进 驻香港。机会之下，新来者也面临着成本压力。 作者：胡阳潇潇，黄婉君
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