China’s top law firms are hiring more senior lawyers from international rivals as western law firms scale back their presence in Hong Kong and China following a slowdown in financial activity.
More than a dozen US law firms such as Latham & Watkins, Sidley Austin and Weil, Gotshal & Manges have closed offices in Beijing or Shanghai in recent months as M&A and capital markets work dried up in China. US law firm Winston & Strawn is the latest to shutter its Shanghai office, after closing its Hong Kong branch last year, leaving the firm with no office presence in Asia.
This has presented an opportunity for the biggest and top-grossing Chinese law firms — known as the “red circle”. They are increasingly looking for business outside of the mainland, including in Hong Kong, helped by big-name hires and aggressive fees, sometimes more than half that of western rivals.