Not exactly a new story for those following the market in 2010 – 2011? but we thought we ought to reference the following piece in “Hong Kong Trader”
Here’s their report? – let us know if you find anything new and interesting !
?
http://www.hktdc.com/info/web/mi/article.htm?LANGUAGE=en&ARTICLE_ID=1X07MF0R&DATASOURCE=hkti
?
US Firms Court HK
?
New York-based Davis Polk & Wardwell LLP was one of the early movers. Having operated in Hong Kong as a United States law firm since 1993, Davis Polk became a Hong Kong law firm in November 2010, appointing three partners to launch the practice. They included Bonnie Chan, formerly Senior Vice President, Listing Division of the Hong Kong Stock Exchange (HKEx), and Antony Dapiran, who relocated from Beijing, where he was managing partner of rival law firm Freshfields Bruckhaus Deringer.
The firm called its expansion in Hong Kong ?a major step forward in its longstanding commitment to the Asian markets.?
Since then, many other US law firms have set up in Hong Kong, among them Wall Street heavyweights Shearman & Sterling, Cleary Gottlieb, Millbank, Sullivan & Cromwell, and Simpson Thacher & Bartlett. Another firm, Skadden, arrived in 2005. Several European firms also have a strong presence in Hong Kong, including UK-based Freshfields Bruckhaus Deringer, and Eversheds. (See webcast, ?Connecting Legal Business.?)
Asked why so many international law firms are coming to Hong Kong, Ms Chan was clear: ?it is really the fact that Hong Kong is happening.?
Churning Out Deals
Ms Chan said that when she joined HKEx in 2007, the pre-crisis market was good. ?Hong Kong was already doing a lot of PRC-related deals, with state-owned enterprises and private entities coming to market.? In 2009, Hong Kong became the number-one market for raising capital via IPOs, repeating that feat in 2010.
?For two years in a row, we were the biggest IPO market. Hong Kong was churning out deals,? Ms Chan said.
Bonnie Chan,
Partner, Davis Polk?s Corporate Department??? ? The statistics tell it all, she continued. ?The total value of Hong Kong IPOs in 2010 was US$57.3 billion, compared to US$33.8 billion for the New York Stock Exchange, US$20 billion for London, and US$8 billion for the NASDAQ. I believe that, for the first half of 2011, Hong Kong is still number one. This shows how important Hong Kong is in terms of IPOs.?
The nature of the listings has changed, too. Whereas once they were Chinese mainland-dominated, now international companies, including Prada, Samsonite, Rusal, AIA and L’Occitane, are choosing Hong Kong as their listing venue, instead of New York or London.
?All the big names are coming to Hong Kong. This makes the market very attractive in terms of practising law,? Ms Chan said. ?In addition, a lot of our US and European clients are looking eastward. Se we need to be here, because our clients are here.?
The Place to Be
Antony Dapiran,
Partner, Davis Polk?s Corporate Department
Mr Dapiran said a Hong Kong practice gives international law firms a broader platform to serve their clients? increasingly complex needs, particularly in capital markets and M&A.
?While many US law firms have had a presence in Hong Kong for some years, most have, until recently, only practised US law here. With the growth of the Chinese economy and the importance of Hong Kong as a capital market for the region, many US firms have now recognised that it is important to add a Hong Kong law practice.? They?re doing so, he said, to provide clients with the service they need and to continue to grow their business in Greater China.
Mr Dapiran said Hong Kong remains the centre of gravity for the Greater China capital markets. ?While many of our clients are based in the Chinese mainland, Hong Kong is the focal point for capital-raising activities, as well as where most of the other market participants are based. And, of course, Hong Kong is an incredibly efficient, convenient and dynamic city in which to live.?
He added that the Greater China story right now is one of the few bright spots in the global economy. ?And the most significant deals going on all touch Hong Kong in some way. This is definitely the place to be.?
Trusted Legal System
David Cheng, Managing Partner, Nixon Peabody??? ?
David Cheng, Chair and Managing Partner of US law firm Nixon Peabody LLP’s China & Asia Pacific Practice, agreed that Hong Kong?s booming market makes it a great place for lawyers to practice. Launched in Hong Kong, in December 2010, via a partnership with local firm Cheng Wong Lam & Partners, the firm had an existing office in Shanghai. But Mr Cheng said Hong Kong?s legal structure appealed.
?To serve our US clients accessing the China market, it is important to be in Hong Kong, as Hong Kong is the bridge, and, vice-versa. We are now assisting Chinese clients to expand globally, so Hong Kong is a bridge that goes both ways. Our clients are coming in and out of Hong Kong because it is an important bridge.?
Mr Cheng added that Hong Kong?s sophisticated arbitration system is well-appreciated. ?The system has been tested by parties both domestic and foreign. We advise our clients, in any matter of contracts or agreements, that the choice for law would be Hong Kong, if possible. The fact is that Hong Kong?s legal system has history and respect among domestic and international parties. For many foreign companies that have never been to China, they feel more comfortable and confident dealing with Hong Kong.?
?
