今年的ALB华南地区市场报告聚焦于广州、深圳两座城市。作为中国经济发展的南部重镇，受疫情和国际格局变化影响，广深最具特色的科技和制造业企业的法律合规需求经历深刻变化。与此同时，粤港澳大湾区融合进一步深化，在新产业和服务领域为法律板块提供了更多机会。
作为粤港澳大湾区的中心城市，过去一年，广州、深圳两城都以超过2.5万亿的经济体量，继续发挥着一线城市的经济引领作用。
去年7月，中国提出“加快形成以国内大循环为主体、国内国际双循环相互促进的新发展格局”。新格局下，特别要求中国经济实现从“重视数量”向“提升质量”、从“要素驱动”向“创新驱动”转变。广深两城在此过程中扮演着不容忽视的角色。
根据《2020年中国城市高质量发展报告》，深圳凭借人均国内生产总值、营商环境便利度和宏观杠杆率，在综合绩效领域位列全国第一；广州则凭借全员劳动生产率和宏观杠杆率优势，排名第二。
此外，深圳还在创新发展指数、协调发展指数、绿色发展指数三个单项排名中取得第一；广州则位列全国共享发展指数榜首。一系列“摸得着的数据”证实了广深两城的高质量发展成效。
过去几年中，广深两城不断联手，共促高质量发展。尤其沿广深高速，崛起一条科创走廊，集中了琶洲人工智能与数字经济试验区、南沙科学城、光明科学城、深港科技创新合作区等一系列重大项目。
“一个基础研究实力雄厚，一个创新型企业众多，凭借着互补优势，广深之间不断开放共享科技创新资源要素……科技创新的‘乘数效应’正在叠加。”央广网如此评价广深联动的未来前景。
产业新方向
过去两年从韧性维度考验着全球城市，而城市韧度的表现之一即能否不断创造经济发展新动能。从这一角度考察广深过去一年的发展，无疑有不少亮点。
在广州，新的区域金融中心身份正不断成形。“广州正在打造华南金融中心。”大成律师事务所广州办公室主任卢跃峰律师说，“从2019年开始规划，广州的各个区，包括南沙、花都、天河，都在围绕不同侧重点发展金融产业。广州的期货交易所、碳排放交易所等也已经落地，最近政府还提出建立资管业务中心的想法，希望吸引更多全球资管机构落户。”
根据广州市政府发布的“广州市金融发展‘十四五’规划”，到2025年，“全市金融业增加值占GDP的比重达9.5%；金融业总资产突破11万亿元”，并建立大湾区资产管理、绿色金融创新、数字金融科创、科技金融创新、跨境投融资服务、金融要素交易六大中心。此种努力已初见成效：2020年，广州金融业增加值达2234亿元，居全国第四位。
这一新身份必然会带来更多法律服务机会。“金融市场、金融交易实际上是最需要法律服务的。”卢跃峰律师说。但同时，他指出广州期翼在金融身份上超越深圳和香港，还需观察各项细则将如何落地，“未来广州律师也应更多参与到金融总部引进过程之中”。
广州促进打造的另一个板块则是数字经济。
2020年，广州正式把人工智能和数字经济升格为城市发展的双引擎之一。在琶洲，唯品会、阿里巴巴、腾讯、国美、小米、科大讯飞等创新型企业不断入驻；包括云从科技、小马智行在内的百余家科创企业也已进驻南沙。
今年，广州再次发布《广州市建设国家数字经济创新发展试验区实施方案》，并审议《广州市数字经济促进条例（草案）》。到2022年，广州电子信息制造业产值预期超过2800亿元，软件和信息服务业收入超过6000亿元，同时推进建设数据交易所、算力算法产业集群、数字基础设施，并全面提升数字治理能力。
这也将切实增加律师的服务机会。“未来业务最重要的增长要围绕数字经济展开。”卢跃峰律师指出，“数字经济的概念非常广，囊括从数字金融，到跨境电商，再到直播等各类业态，在法律服务层面，也是从投资、并购、基金、资本市场，到合规、反垄断、知识产权，方方面面都涉及到。”
卢律师观察到，目前广州律师中，有的“研究区块链、互联网、数据合规、网络安全”等直接和数字经济相关的法律问题，也有人研究数字企业的并购、税收、知识产权、资本市场等问题，例如大成广州，去年就专门召开了“数字经济时代的税法适用”论坛。“我们希望未来争取更多该领域市场份额。”卢律师坦言，“也要求律师更多从数字经济角度研究现有业务，寻找更多增长点。”
作为中国的创新之都，过去一年深圳的数字经济也经历了快速发展。2020年，深圳数字经济核心产业增加值达8446.6亿元，占全市GDP比重30.5%，规模和质量均居全国首位。
疫情促使下，深圳的互联网、大数据、人工智能等技术开始和现代生产制造、商务金融、文化消费、教育健康、流通出行等领域深度融合，如《深圳特区报》所说，“不断颠覆传统制造模式、生产方式和产业形态”。
此外，深圳还在加强弥补基础研究投入不足的问题，目前每年有三分之一的财政科研资金用于基础研究，持续完善“基础研究+技术攻关+成果转化+科技金融”的全过程创新生态链。
“数字经济是深圳的七大战略性新兴产业之一，实际上深圳数字经济产业规模一直居全国首位。”大成律师事务所深圳办公室主任张健律师说。在此背景下，张律师观察到过去一年“一系列数字经济有关立法首先出现在了深圳”。
7月，《深圳经济特区数据条例》正式公布；8月，深圳市人大常委会审议《深圳经济特区数字经济产业促进条例（草案）》；深圳《智能网联汽车管理条例》《人工智能产业促进条例》《细胞和基因产业促进条例》等也已提交审议。
据悉，未来5年，深圳人大还计划制定和修改超过100部法规。
谈及背后原因，张健律师指出，“数字经济有其自身的运行规律和客观需要，在发展过程中也出现了很多难点和痛点。尤其中国是成文法国家，现实中很多问题迫切需要立法者给予立法规范和保障。例如《数据条例》等法规，就对数据安全和数据应用平衡；数据确权、定价、流通；数字经济的基础设施建设和行业标准等难点做出回应。未来其他立法也会把整个数字经济产业规范化，营造更好的发展环境”。
立法不断推陈出新要求律师快速更新知识、协助客户做好合规，也催促着律师业思考自身变革。“各行各业都在调整，关于企业数字化转型的讨论也越来越多……客户在变化，我们的服务方式也必须相应升级。”张健律师坦言，“如果客户已经适用了数字化业务模式，而律师的作业方式还很传统，是不能适应客户需求的。在律所管理过程中，利用数字化提升管理效能，减少管理的线条安排等，对我们也是挑战。”
法律板块持续发展
成熟的经济催生成熟的法律服务市场。1976年，改革开放后中国第一家法律服务机构广州市法律顾问处成立；1983年，新中国第一家律所——蛇口律师事务所落地深圳。经过几十年发展，广深法律市场也确立了自己的诸多优势板块。
以大成律师事务所为例，大成广州成立于2001年，大成深圳则成立于2008年，两家办公室目前都以公司业务、金融与房地产、争议解决为收入前三的业务板块。卢跃峰律师告诉ALB，虽然2020年经历疫情，“我们的业务增长还是比较可观，今年也保持了增长势头”。
谈到广深市场，外人总喜欢将两者相比较，但卢律师指出：“广州和深圳的经济结构其实不太一样，也反映到法律市场发展状况不同。”他说，深圳经济有两大中心：一是金融，二是科技创新，“金融和科技都是存在诸多创新的领域，需要有复杂的规则去规制，因此催生很多法律服务需求，也更容易发生争议”。
反观广州，“它更传统一些，传统工业、贸易更发达。传统业态很多依靠多年形成的商业惯例规制，并不太需要新的规则”。加上近年“深圳市政府在营造法治化营商环境方面下了功夫，包括把第三巡回法庭、最高院国际商事法庭引到深圳……确实深圳的法律服务市场发展比广州快”。
“广州这两年强调两大发展重心，一是数字经济，另一个是通过城市更新焕发城市活力。”
卢跃峰，大成广州
“但广州也有它的优势，包括教育、人才、医疗资源都比较好，也有很好的产业基础。”卢律师说，“广州这两年强调两大发展重心，一是数字经济，另一个是通过城市更新焕发城市活力。”
发展数字经济引发的新法律服务机会如上所述，此外还有该领域的反垄断业务，“过去两年国家加强了对于数字经济，尤其互联网企业的反垄断审查力度，尤其并购相关的反垄断审查明显增多，我们也组织了专门团队展开研究”，卢律师说。
另一个增长引擎——城市更新带来的机会也不少。卢律师介绍说，大成广州在此领域向来领先，例如最早的猎德村改造项目就是大成广州胡欣然律师团队参与完成的。“现在广州的城市更新不仅是拆旧建新，而是注重引入新业态，例如天德广场项目就非常成功，它原本是个村集体物业，通过引进优质公司把它重新做活。这种案例很多。”
过去一年，深圳法律市场也经历了“蓝海”领域的持续涌现。在张健律师观察中，增长最快的当属破产重整清算及不良资产处置、城市更新、资本市场，以及跨境贸易纠纷，这和全球经济进入下行周期、疫情，以及城市基础设施建设投入加大、中国资本市场的诸多改革息息相关。
此外，张律师也观察到深圳跨境业务的发展。一个典型是跨境数据合规业务，“境内外客户开始提出越来越多的数据合规需求，从我们每个月的跨境业务报告来看，这部分占比也较高”。比如他们就接触了一个项目：深圳电信行业的一位客户希望在欧洲销售产品，大成深圳于是和大成巴黎办公室合作，对相关业务的跨境数据合规问题进行审查，“客户的自主性、迫切性都加强了”。
合规之外，“还有一些金融机构希望在内地展业，有合规或者监管方面的咨询业务……对内地政策寻求专业意见的倾向越来越多”；跨境知识产权、跨境破产债权申报、涉外争议解决、境外上市等也都是热门领域。
作为一直在中国改革开放高地“乘风破浪”的律师，最近张健律师对于如何在深圳快速发展的市场中把握先机有了新的观察。“做律师越久越发现，要特别注重对国家和当地宏观政策的研究，很多业务机遇实际上都在这些政策蓝海里。研究和把握好政策之后，再结合律所的实际情况和团队优势和能力提前做好布局。作为律所管理者，保持对政策和市场的敏感性和敏锐度尤其重要。”他说。
湾区融合带来新机会
谈到广深两地发展，自然绕不开粤港澳大湾区持续融合带来的诸多机遇。过去几年，大湾区在司法、金融等领域动作不断：2019年，《内地与香港特别行政区法院就仲裁程序相互协助保全的安排》落地；2020年，《内地与香港特别行政区相互执行仲裁裁决补充安排》通过，广东九市同时试点开放港澳律师前来执业；2021年粤港澳“跨境理财通”业务试点正式启动……这都重塑着广深法律服务的内容和市场态势。
谈到上述变化，受访律师首先提到了“跨境理财通”下的新机遇。在“跨境理财通”下，大湾区内地及港澳居民个人可以跨境投资对方银行销售的合资格投资产品。卢跃峰律师告诉ALB，大成广州很早就参与到了相关业务中，“这很难得。以往金融产品的设计都放在大型银行的总部来做，但因为这个产品直接面向大湾区，一家国有银行的广东省分行承担起设计工作，我们也有机会参与其中”。
借助“跨境理财通”，广州希望未来抓住广东近100万户高净值家庭的财富管理需求，打造国内私人银行及财富管理机构聚集区。卢律师坦言，近年大成广州的跨境金融业务总体发展比较快，参与了多项跨境融资、担保、发债项目，“前一阵天河区区长来大成广州办公室调研，他也认为跨境金融是以后天河区，甚至广州金融业发展的重要环节”。
张健律师则观察到跨境金融发展促生的另一个服务方向。
“跨境理财通便利个人跨境投资，同时监管层面的需求也会增多，监管机构也需要律师提供专业意见。已经有地方金融监管机构找到我们，咨询如何与港澳金融机构、金融产品和服务进行对接融合，如何促进和便利三地金融专业人士的跨区域工作等。”张律师说，“在大湾区，政府、监管部门也在想着如何把握机会，引领所在区域、领域更好发展。”
大湾区融合当然也发生在法律服务行业。张健律师指出，未来湾区律所不应该是单打独斗的发展逻辑，而是更应该拓宽自身的视野，更具有开放包容和合作精神，谁能够先优化整合，适应好大湾区持续融合的新生态和新格局，谁就能占得先机。为此，“大成在大湾区的四家办公室实际上前几年就开始着力推动融合，打通业务板块，提高信息共享透明度，在业务标准化建设和执业水准方面共同向国际化迈进”，他说。
当然，融合意味着资源流通，也意味着新竞争的产生。卢跃峰律师坦言：“现在港澳律师可以考内地律师牌，在内地执业，尤其是香港同行，未来可能在很多领域逐步渗透到内地传统法律服务市场。我很关注他们具体会怎么做。之前主要是通过联营所，现在也看到一些创新方式，例如有澳门律师直接在珠海投资律师事务所……我觉得这是好事，虽然会加大竞争，但也会让我们迅速提升，再去占领市场。”
展望未来
在中国，广东省拥有最为庞大的律师群体，其中广深律师又占据主流。根据最新数据，截至2020年底，广州共有17956名律师、814家律师事务所，创收83亿元；深圳则有15442名律师、922家律师事务所，2018年创收67.46亿元。
在卢跃峰律师的观察中，疫情很大程度重塑了这一庞大群体的工作方式。“我们的大量工作、沟通转为线上完成。”他说，“因此大成这种在全国各地有分支机构、顶尖人才分布在不同办公室的律所的优势开始特别显现出来。比如数字合规有戴健明律师；城市更新有胡欣然律师；跨境金融有朱亮律师；汽车业务有陈峰律师；上市业务有李寿双律师……下一步我们还要再加强跨所合作。”
张健律师对于全国性大所的优势也颇有感触。“律师业务难免受地域影响，例如反垄断业务，北京或上海天然具有优势，而深圳很少有律师把反垄断作为焦点；再如深圳能源、矿产领域律师较少，但西部很多；而资本市场和银行金融、TMT等领域，北京、上海、深圳、广州等办公室又具有明显的优势……我们能很好地链接客户和其他办公室的同事，为客户提供一站式的综合服务。”他说。此外，面对不断升级的客户需求和知识更新，大所系统性的培训资源、较完善的知识管理和协同作业等优势也愈发明显。
“各行各业都在讲数字化逻辑，律所也必须变革。”
张健，大成深圳
借力大所优势外，张健律师也在积极思考律所数字化转型。“各行各业都在讲数字化逻辑，律所也必须变革。现在我们已经看到一些前沿变化，例如数字化网络化律所概念的产生，未来这种新业态的固定成本更低，对我们挑战比较大。”他说。
此外，张律师认为数字化的透明特性也会促进律所服务模式的变革，这一方面会打通律所内部团队的知识共享，也会给客户更多可能参与到委托事务的各环节之中，“在服务过程中不断分享阶段性成果”。
最后，两位律师则指出在广深市场持续吸纳人才的重要性。卢跃峰律师说，下一步大成广州“希望引进更多年轻的，尤其是90后合伙人；另外从专业角度，也希望有更多数字、创新经济领域的优秀合伙人加盟”。
张健律师则指出，经济转型发展促生律所业务板块变革，律所开始更多根据市场主体的行业特征来组织自身业务团队，因此大成深圳“会特别注重引进综合人才，例如具有特定行业背景以及企业法务部门转型的人才，因为他们不仅懂法律，而且有复合知识背景，对企业生产、行业比较了解”，而客户越来越需要真正懂“行”而不仅仅懂“法”的律师。
因此，大成深圳会着重根据深圳的“四大支柱产业、七大新兴战略性产业”发展人才和业务。在大成现有的专业细分领域基础上，“我们希望律师做得更精深一点、分工更好一点，这样差异性会更明显，内部合作潜能会更好地发挥，客户的获得感也会更强更好”，张律师说。
未来，广深律师也会以更多元的角度评价自身成绩。“不仅看创收或者税收贡献比重。”卢跃峰律师说，“更重要的是客户对我们的认可和评价。”
ALB CHINA REGIONAL REPORT: SOUTH CHINA
This year’s South China regional report focuses on the cities of Guangzhou and Shenzhen. Due to the impact of the pandemic and the murky geopolitical landscape, both cities have experienced profound changes to their legal and regulatory climate in the past two years. Meanwhile, the deepening connections within the Greater Bay Area continue to provide new industrial and business opportunities for the legal sector.
As the central cities of the Greater Bay Area (GBA), Guangzhou and Shenzhen both led the local economy with GDP of more than 2.5 trillion yuan ($390 billion) in the past year.
In July 2020, China proposed to “accelerate the formation of a new development layout with major domestic circulation, and domestic and international circulations promoting each other”. The new proposal requires China to shift its economic pattern from “quantity-centred” to “quality-centred”, and to drive the economy through innovation instead of inputs. Guangzhou and Shenzhen play an important role in this process that cannot be ignored.
In the past few years, Guangzhou has collaborated with Shenzhen to promote economic development. The two cities have set up a science and innovation corridor along the Guangzhou-Shenzhen expressway that consists of the Pazhou artificial intelligence and digital economy pilot zone, Nansha Science City, Guangming Science City, Shenzhen-Hong Kong Innovation and Technology Co-operation Zone and a series of other major projects.
“One has great strength in fundamental research, while the other has numerous innovative enterprises. With their advantages supplementing each other, Guangzhou and Shenzhen continue to open and share resources, stacking up the ‘multiplier effect’ of science and technology innovation,” says China National Radio on its website discussing the future path of the collaboration.
NEW INDUSTRIAL DIRECTION
The past two years have tested global cities in terms of resilience, and one of the manifestations of this resilience is their ability to continuously create new momentum for economic development. Considering the development of Guangzhou and Shenzhen from this angle, there are undoubtedly lots of highlights.
In terms of Guangzhou, its position as a new regional financial centre is taking shape.
“Guangzhou is building itself as a South China financial centre,” says Lu Yuefeng, director of Dentons Guangzhou office. “The Guangzhou Futures Exchange and China Emissions Exchange Guangzhou have landed. Guangzhou’s government also recently proposed the idea of establishing an asset management business centre.”
According to The Outline of the Fourteenth Five-year Plan for Financial Development released by the Guangzhou government, the city will establish six centres for asset management, green financial innovation, digital financial science and innovation, technology financial innovation, cross-border investment and financing services and financial factor trading in the GBA.
New developments inevitably bring in more demand for legal services.
“Financial market and financial transactions need legal services,” says Lu. But he points out that Guangzhou’s financial status depends on how the rules will be implemented. “Guangzhou lawyers should also be more involved in introducing financial headquarters to the city in the future,” says Lu.
The digital economy is another sector Guangzhou is developing.
In 2020, Guangzhou officially elevated artificial intelligence and the digital economy as one of the twin engines of the city. Vipshop, Alibaba, Tencent, GOME, Xiaomi, iFlytek and other innovative companies continue to move into Pazhou, the new city centre of Guangzhou. More than a hundred science and technology enterprises, including CloudWalk Technology and Pony AI, have also settled in Nansha.
This will also effectively increase the opportunities for lawyers.
“The most important growth for future business is going to be around the digital economy,” Lu points out. “The definition of the digital economy is broad, covering industries from digital finance and cross border e-commerce, to the live streaming industry. In terms of legal services, it involves areas such as investment, M&A, fund, capital markets, compliance, antitrust, and intellectual property.”
Lu notes that among Guangzhou lawyers, there is research underway on legal issues directly related to the digital economy such as “blockchain, Internet, data compliance and cybersecurity,” and some lawyers are also looking into areas including M&A, taxation, IP and the capital markets of digital enterprises.
“We hope to get more market share in these areas,” says Lu. “We also require lawyers to adjust their practice areas more in line with the digital economy.”
As a city of innovation in China, Shenzhen has also seen rapid growth of its digital economy. In 2020, the added value of its digital economy core industry reached 844.66 billion yuan, accounting for 30.5 percent of the city’s GDP, with the scale and quality ranking first in the country.
Under the pandemic, Shenzhen’s Internet, big data, artificial intelligence, and other technology industries began to integrate deeply with traditional areas as production and manufacturing, business and finance, cultural consumption, education and health, and travel. As Shenzhen Special Zone Daily says, Shenzhen “continuously subvert the traditional manufacturing model, production methods and industrial patterns.”
“The digital economy is one of the seven strategic emerging industries of Shenzhen,” says Zhang Jian, director of Dentons Shenzhen office. Against that backdrop, Zhang observes that over the last year “a series of legislations regarding digital economy first took place in Shenzhen”.
Regulations of the Shenzhen Special Economic Zone on Data was released in July 2021. In August, the Standing Committee of the People’s Congress of Shenzhen reviewed the Shenzhen Digital Economy Industry Promotion Regulations (Draft). Also, Regulations on the Administration of Intelligent Connected Vehicle Industry, Artificial Intelligence Promotion Regulations, and Cell and Gene Industry Promotion Regulations have all been submitted for consideration.
In the next five years, Shenzhen plans to develop and modify over 100 rules and regulations.
“The digital economy industry has its own pain points and legal issues. Many issues urgently require legislators to respond with new rules and regulations. In the future, legislation will help standardize the whole digital economy industry and create a good environment for development,” Zhang says of the reasons behind the legal changes.
The launch of new legislation requires lawyers to update their knowledge and assist on compliance for clients, and also urges them to think of self-transformation.
“Lawyers can not satisfy clients’ needs if their operation stays traditional while the client has already adapted to digital operations. In law firm management, it is also challenging for us to use digitalization to improve management efficiency and reduce bureaucratic arrangement,” says Zhang.
CONTINUING DEVELOPMENT
A mature economy nurtures a mature legal services market. The first legal service institution of China, Guangzhou Legal Counsel Office, was established in 1976. The first law firm of the PRC, Shekou Law Firm, was established in Shenzhen in 1983. After decades of development, the legal markets of Guangzhou and Shenzhen have established dominant positions.
Take Dentons as an example. Founded in 2001 and 2008 respectively, Dentons Guangzhou and Shenzhen both currently have corporate practices, finance and real estate, and dispute resolution as their top three practice sectors in terms of revenue.
People like to compare the Shenzhen market with the Guangzhou market. However, according to Lu, “The economic structure of Guangzhou and Shenzhen is not the same, which is also reflected in the different development of the legal market”. He adds that finance and technology are two pillars of Shenzhen’s economy, and “are both areas of innovation that require complex rules to regulate, thus creating a lot of demand for legal services.”
Meanwhile, “Guangzhou is more traditional with more developed industries and trade. Many traditional businesses rely on business customs that have developed over the years to regulate,” says Lu. “Also, the Shenzhen government has made an effort to create a legalized market environment, including the introduction of the Third Circuit Court and China International Commercial Court. In this sense, the legal market of Shenzhen indeed develops faster than that of Guangzhou.”
Lu Yuefeng, Dentons Guangzhou
“But Guangzhou has its strengths,” Lu continues. “It has prioritized two major areas of focus in the past two years. One is the digital economy and the other is to revitalize the city through urban renewal.”
As discussed, the developing digital economy has brought new opportunities for legal services. “In particular, the number of M&A-related antitrust reviews of tech companies has increased significantly, and we have organized a special team to provide services in this area,” says Lu.
Urban renewal, another driving force, has also brought lots of new opportunities.
“Nowadays, urban renewal in Guangzhou is not only about demolishing the old and building the new, but also about introducing new businesses. For example, the Tiande Centre project is very successful. It was originally a village collective property, and it is revived through the introduction of quality companies,” shares Lu.
Over the past year, the Shenzhen legal market has also experienced a continuous emergence of “blue oceans”. Zhang observes that the fastest growing areas are restructuring and disposal of non-performing assets, and capital markets.
Zhang also notes the growth of cross-border business in Shenzhen, especially the cross-border data compliance area. He recently worked on such a project with his team: a client in the telecommunications industry in Shenzhen wanted to sell products in Europe, and Dentons Shenzhen worked with Dentons Paris office to review cross-border data compliance issues for the deal.
Apart from compliance, “there are some financial institutions that want to expand their business in the mainland China. There is a growing trend to seek professional advice on mainland policies,” says Zhang. Cross-border IPR, cross-border bankruptcy claims filing, foreign-related dispute resolution, and overseas listings are also trendy areas.
As a lawyer who has been riding the wave of China’s reform and opening up, Zhang recently has a new observation on how to seize opportunities in the fast-developing market of Shenzhen. “The longer you work as a lawyer, the more you find that you have to pay special attention to the study of national and local macro policies. Many business opportunities are actually within these policies. As a law firm leader, it is especially important to maintain sensitivity and acuity,” says Zhang.
NEW OPPORTUNITIES FOR THE GBA
When it comes to the development of Guangzhou and Shenzhen, one cannot ignore the many opportunities brought about by the continuous integration of the GBA. In the past few years, the GBA has seen continuous action in the judicial and financial fields, all of which have reshaped the content and market dynamics of local legal services.
One new opportunity was brought by the Cross-border Wealth Management Connect Scheme (Cross-border WMC). Under the scheme, people living in the GBA can make cross-border investments in eligible products sold by each other’s banks. Lu tells ALB that Dentons Guangzhou got involved with the related business at a very early stage.
“That’s not easy. In the past, the design of financial products would be conducted by the headquarters of major banks. But given that this product directly faces the GBA, a state-owned bank’s Guangdong branch took on the design work. Therefore we also got a chance to participate in the project.”
With the scheme, Guangzhou hopes to capture the wealth management needs of nearly one million high net worth families in Guangdong in the future and create a gathering area for private banking and wealth management institutions in China. Lu says that in recent years, Guangzhou’s cross-border financial business has grown rapidly, and Dentons Guangzhou has been involved in several projects including cross-border financing, guarantee, and debt issuance.
Zhang observes another direction of service that the development of cross-border finance has led to.
“Cross-border WMC makes individual cross-border investment more convenient. At the same time, it increases demand at the regulatory level. The regulatory institutions also need professional advise from lawyers. There are already financial regulatory institutions reaching out to us, consulting how to interface with financial licenses, financial insurance, and other products in Hong Kong and Macau,” says Zhang.
The integration of the GBA is also reflected in the legal service sector. “Dentons’ four offices in the GBA started to integrate, connecting business segments and improving transparency of information sharing,” Zhang introduces.
Also, integration means the appearance of new competition.
“Now, Hong Kong and Macau lawyers can get the mainland lawyer license and practice on the mainland. In particular, Hong Kong lawyers, in the future they will get more involved with the traditional legal service market in the mainland in many areas. I will pay close attention to what they will do in practice. I think it’s a good thing, it will increase the competition but it will also allow us to improve quickly,” says Lu.
LOOKING AHEAD
In China, Guangdong Province has the largest number of lawyers, with Guangzhou and Shenzhen lawyers making up the bulk. According to the latest data, Guangzhou had 17,956 lawyers and 814 law firms by the end of 2020, generating revenues of 8.3 billion yuan, while Shenzhen had 15,442 lawyers and 922 law firms, generating revenues of 6.746 billion yuan in 2018.
Lu observes that the pandemic has largely reshaped the way lawyers work.
“A large amount of our work and communication has shifted to online,” says Lu. “Therefore, the advantages of a law firm like Dentons, which has branches all over the country and has top talent in different offices, are beginning to emerge. For example, we have Dai Jianming for digital compliance; Hu Xinran for urban renewal; Zhu Liang for cross-border finance; Chen Feng for automotive business; and Li Shoushuang for IPO business. We will strengthen cross-office cooperation in the next step.”
Zhang also agrees on the advantages of a large national firm. “The business of a lawyer is geographically affected. Take antitrust as an example, Beijing and Shanghai have strengths in these areas naturally, but Shenzhen lawyers rarely take antitrust as their focus. In addition, Shenzhen has fewer lawyers in the energy field while there are plenty in the West. Dentons’ domestic even global network enables us to better connect with colleagues at other offices and offer one-stop service to our clients,” says Zhang.
Zhang Jian, Dentons Shenzhen
In addition to leveraging the advantages of large firms, Zhang is actively thinking about the digital transformation of his own institution. “Everyone is talking about digitalization and law firm must change as well. Now we have seen some cutting-edge changes, such as the creation of cloud law firm, a new business model that is cheaper and therefore more challenging for us,” says Zhang.
Finally, Lu and Zhang stress the importance of continuously attracting talent in the Guangzhou and Shenzhen markets.
Lu says that the Dentons Guangzhou “hopes to hire more young lawyers, especially partners born in the 1990s. From a professional point of view, we also hope to have more excellent partners in the field of digital and innovation economy.”
Zhang points out that economic development has led to changes in the law firm’s business sector. The firm has begun to organize its business team based on the industry. Dentons Shenzhen “will pay special attention to the introduction of comprehensive talents, such as those who have transformed from the corporate in-house department, because they not only know the law, but also have a composite knowledge background, and have a better understanding of corporate production and industry.”
In the future, Guangzhou and Shenzhen lawyers will assess their performance from a more diverse angle. “We will not just look at the revenue generation and the proportion of tax contribution,” says Lu. “The most important dimension is the recognition and evaluation from clients.”
To contact the editorial team, please email ALBEditor@thomsonreuters.com.