Dacheng Law Offices, Asia's largest legal firm by number of lawyers, opened a Hong Kong office, joining rival US and Chinese firms that have expanded in the city to target a boom in finance and mergers.
Beijing-based Dacheng will have 15 partners in Hong Kong by the end of this year, Yang Jinzhu, a Hong Kong-based partner said in an interview yesterday. Dacheng, whose clients include China Railway Group Ltd, China National Aviation Holding Co, and Export-Import Bank of China, hopes to win business from foreign companies that want to issue yuan-denominated shares on Shanghai's planned international board, he said.
The number of international law firms in Hong Kong has more than doubled to 70 since 2004, including Chinese firms King & Wood, Zhong Lun Law Firm and Jun He Law Offices. New York-based firms Shearman & Sterling LLP and Weil Gotshal & Manges LLP have also expanded their offices in the last year seeking merger and private equity work with local law practices. Dacheng is one of 12 Chinese mainland law firms with offices in Hong Kong.
"Hong Kong is a financial hub and gateway into and out of the Chinese mainland," said Law Society of Hong Kong President Huen Wong.
China-related stocks now account for half of market capitalization in the city, up from 5 percent in 1993. Companies last year raised HK$248.2 billion ($32 billion) through initial share sales in Hong Kong, the most of any exchange.
Mainland capital markets
"Hong Kong is a bridge between the international and mainland capital markets so it's important that we're here," Dacheng's Yang said.
Ten of the 12 Chinese mainland firms in Hong Kong, which maintains a separate legal system from the People's Republic of China, have registered as foreign law firms. Meanwhile, Beijing- based King & Wood and Jun He have converted their Hong Kong operations into local firms, enabling them to practice there without a Hong Kong-based partner.
Dacheng said it will work in association with Hong Kong- based Wong Poon Chan Law & Co.
Dacheng's 835 lawyers made it the largest law firm in Asia in 2009, according to Asian Legal Business magazine. Baker & McKenzie LLP and King & Wood followed with 821 and 800, according to ALB.
Dacheng is aiming for revenue of 10 million yuan ($1.5 million) in its first year at the new Hong Office, Yang said. Dacheng will cover capital markets and litigation and will include a new practice targeting family-run businesses in Asia, said Yang.
The firm has 29 offices in China and offices in Los Angeles and Singapore. Dacheng opened in Taipei May 16 and plans to establish New York and Hanoi offices by the end of the year, spokeswoman Lily Lau said.
