25 Asian Legal Business | October 2024 Regional Ranking translated into a substantial increase in service demand or revenue. Civil and commercial litigation, criminal litigation, and government legal services still hold a significant market share, but given the rising number of practising lawyers and the impact of short video streaming on the online marketing of legal services, individual lawyers are feeling increased competitive pressure in business development and case handling. In short, the days of rapid growth and high profitability may not easily return.” However, Zhou adds that judicial administrative authorities have provided targeted support for the legal industry. For example, “the Several Provisions on Promoting the Quality Development of the Legal Services Industry in the Pudong New Area implemented by the Shanghai Pudong New Area Government in 2023 includes policies that increase support for the legal industry by encouraging firms to develop crossborder services and explore the special partner system, promoting lawyers’ pro bono services and standardising the application for cost deductions, and exploring a system of full-time paralegals, etc.” Xiang Zhenhua, partner and head of the Hangzhou office of Jingtian & Gongcheng, similarly observes structural changes brought to firms’ business by evolving economic cycles and tightening regulatory requirements. While business volume for capital market practice such as IPO has barely increased, “volume for other areas such as mergers and acquisitions, restructuring, dispute resolution and data compliance is increasing. Therefore, overall demand for legal services in the YRD region is still relatively balanced at present.” At the same time, Xiang admits that market competition has undoubtedly become more intense. Having been based in Hangzhou for years, he has noticed an influx of lawyers from outside the YRD region, such as the North and Southwest China, into Hangzhou or other cities in the YRD region. He notes that one non-local firm added over 100 lawyers to its Hangzhou office within a year of establishing its presence in the city. Furthermore, he has observed a trend of career changes. Reports indicate that middle-aged professionals are taking bar exams and transitioning into legal careers. These new entrants to the legal profession often bring valuable work experience from other sectors, giving them an edge over fresh graduates in areas such as communication skills and building client trust. “This influx of players into the legal industry and the YRD region will inevitably result in more intensified competition, which will affect local lawyers in terms of fee rates, service levels, etc.,” says Xiang. Development strategies Faced with fiercer competition, firms believe they should
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