There is an ancient Chinese proverb: always more diggers than gold. And while China is today’s land of golden opportunities, Australia’s top law firms have all been busy ploughing. The financial crisis has uncovered a new mine of opportunities – but our domestic firms must fight tooth and nail for a share of the spoils, up against multiple rivals.
The full competitive threat of the Australian firm’s most dangerous opponent – increasingly sophisticated local law firms – remains unknown. All we do know is that law firms must strive harder than ever before for that competitive edge.
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Onshore firms
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|
Firm
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No of offices in China
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No of partners/fee earners in China
(HK + PRC)
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No of partners in HK
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No of partners in PRC
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No of fee-earners (ex-partners) in HK
|
No of fee-earners (ex-partners) in PRC
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Year established in PRC
|
|
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Beijing, Shanghai, Hong Kong
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110
|
13
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4 (3 in Beijing, 1 in Shanghai)
|
77
|
16
|
1989
|
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Allens
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Shanghai,Beijing, Beijing IP, Hong Kong
|
45
|
5
|
2
|
18
|
20
|
1996
|
|
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Shanghai, Hong Kong (Beijing open in 2010)
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35
|
7
|
0
|
22
|
6
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1999
|
|
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Shanghai
|
7
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nil
|
1
|
nil
|
6
|
1998
|
|
|
Shanghai
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2-4 (depending on need)
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nil
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0
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nil
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2-4 depending on need
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1998
|
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MMLC
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Beijing, Guangzhou
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30
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nil
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5
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nil
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30
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2002
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New opportunities
“The financial crisis has shifted the balance of East and West”, says Allens Arthur Robinson’s head of greater China M&A, Campbell Davidson. The financial crisis slowed down growth elsewhere in the world but it accelerated China’s political and economic ascendancy.
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“The financial crisis has rushed China into a role we may have expected from it 20-30 years down the track. The supply of corresponding legal infrastructure has not kept up to pace with these accelerated financial leaps.”
Campbell Davidson
Allen Arthur Robinson
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Now China’s relative immunity to the global slump has increased its relative global importance. “The financial crisis has rushed China into a role we may have expected from it 20-30 years down the track,” Davidson says. “The supply of corresponding legal infrastructure has not kept up to pace with these accelerated financial leaps.”
It is a hot race between law firms, both foreign and local, to see who can capture the biggest share of this ‘once-a-global economic cycle’ opportunity. Building the legal framework to match China’s rapid progress means more work, but also new opportunities.
Malleson Stephen Jaques’ chief executive partner Robert Milliner (pictured right) says that China’s financial services industry has begun to recognise the opportunities stemming from the economy’s enormous savings capacity. “We may see a demand from Chinese regulatory authorities for legal advice on financial products and how they should be brought into the market,” Milliner explains.
New openings may also rise on the back of increasing inbound investment into China, from investors made more cautious by the GFC. Milliner said that the increasing complexity of financing arrangements may demand sophisticated legal services in creating derivatives and hybrid instrument, while he also predicted an increasing demand for insurance products.
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