LEGAL OUTLOOK
With Chinese law firms gaining ground in the Hong Kong market, what does this spell for Hong Kong law firms?
Hong Kong’s legal sector faces tougher competition from Chinese law firms Mainland firms have been establishing themselves in the HK market over the past few years
T
he COVID-19 pandemic brought about a season of changes for every sector of the economy and the legal sector is no exception. As we enter a new year, several law firms in Hong Kong predict how the future will move forward in the legal industry. In 2021, Hong Kong law firms will see a lot of competition from their Chinese counterparts, said Olga Yung, regional director of Michael Page Hong Kong. “Many of them have become more sophisticated after entering the Hong Kong market in the past few years, the most recent firm being localised is Haiwen. Integrating into the Greater Bay Area development, these pilot measures allow Hong Kong legal practitioners to practice civil and commercial law in the nine mainland cities of the GBA, upon completing the examination and training course,” Yung said. Hong Kong is the top place
12 HONG KONG BUSINESS ANNUAL 2021
Law firms need to embrace technology to meet client demands and create a more efficient work environment
Chinese law firms have been setting up for their new overseas offices for the past two years, according to the data collected by China Business Law Journal from July 2018 to August 2020. Some Chinese law firms have started gaining footing in the Hong Kong market by entering alliances with local law firms. In December 2020, the Law Society of Hong Kong approved the association of independent Hong Kong law firm Yang Chan & Jamison LLP and Chinese law firm Shanghai Qin Li Law Firm. The association of law firms is said to facilitate expansion of services to enterprises with businesses in Mainland China and Hong Kong, with a focus on the Greater Bay Area. This may not be surprising as managing partner of Baker McKenzie’s Hong Kong and Mainland China offices Steven Sieker said that China is set to lead the world in economic recovery.
“We anticipate an increase in investment activity and an associated increase in legal activity as businesses expand their footprint in Hong Kong as well as in the GBA,” Sieker added. Flexible work measures continue The pandemic has left its mark indefinitely, so it’s not surprising that flexible work measures will continue in 2021. “More work flexibility measures – work from home has proved to be both cost efficient and work effective at most law firms during the first three waves of COVID-19 in Hong Kong, and firms are expected to continue the work flexibility measures in 2021,” Yung said. HFW’s Patric Yeung has agreed with this sentiment, saying that firms will be looking to maximise their efficiency with the resources and tools available to them. “As the market for technology
