Nothing we didn’t know already but worth referencing the fact that the UK press has picked up on the story that US
firms are looking to “outgun” UK firms in Hong Kong
Talent war at expat law firms in Hong Kong
The ‘magic circle’ of British law firms dominating Hong Kong is under threat from more aggressive US rivals
American law firms are expanding into Hong Kong Photo: REX FEATURES
The Hong Kong legal market has become very competitive with so much lucrative business coming from mainland China. Accounting problems with US-listed Chinese companies and anti-bribery work have kept lawyers in the former British colony busy.
But this sector is no longer monopolised by the elite British outfits of Linklaters, Allen & Overy, Clifford Chance, Slaughter and May, and Freshfields Bruckhaus Deringer. US law firms such as Simpson Thacher & Bartlett are stealing a march on their British counterparts and winning some big deals on the island. Not only this but they are also rising up the ranks of league tables, including the Thomson Reuters Asia Pacific ex-Japan rankings for legal advisers.
One British lawyer based in Hong Kong said: “There are many US law firms now moving here, big and small, and they are creating quite a buzz. While the old guard see them as a threat some of the younger lawyers are quite pleased as they hope to be poached for more money.
“But some of the magic circle are getting a bit nervous and offering improved packages to their senior staff to make sure they lock them in for as long as possible. Plus all this is good news for clients as it gives them more choice.”
A big factor helping to lure established lawyers to new US players is the offering of “New York rates” – the standard pay rate for Wall Street legal eagles. Newly-qualified lawyers at US firms can earn in the region of ?92,000 a year compared to around ?73,000 at a UK equivalent. Many US law firms also offer cost of living allowances, which can be quite generous in Hong Kong given the high price of rents.
