With three international law firms opening offices in the city, July has surely been Shanghai’s month.

Reed Smith launched its Shanghai practice with former Dorsey & Whitney Shanghai head, Jay Yan. This is the third China location for the firm, which also has offices in Hong Kong and Beijing. 

Ogier also opened a Shanghai office, and in doing so became the first offshore firm with a presence in Mainland China.  Former legal director (China/ Asia) for Australian mining company Rio Tinto, Kristy Calvert, will head the firm’s Shanghai outpost – an office which will serve as the firm’s business development outpost on the Mainland.

US firm Ropes & Gray, is also down to business in Shanghai, with partner Arthur Mok overseeing the new office.

While all three firms have offices in Hong Kong, it is notable that neither Ropes & Gray nor Ogier have offices in Beijing. For overseas firms looking to establish themselves in Mainland China, Beijing has traditionally been the first port of call, but the trio of openings in Shanghai potentially heralds a change.

As the capital, Beijing’s key selling point is its proximity to government functions and the opportunity to build up government connections. Meanwhile, Shanghai is successfully carving out a niche in finance, with ambitious plans to become an international financial centre by 2020. The city’s growth is certainly attracting plenty of investors and professional service providers.

But what does Shanghai’s popularity mean for Beijing? Although the majority of the world’s largest firms have three China locations – in Hong Kong, Shanghai and Beijing – it is possible that growing client interest in Shanghai as a financial centre will result in Shanghai ultimately overtaking Beijing as the first Mainland location for most international firms.

A detailed analysis will appear in the forthcoming issue of ALB China.