Qingdao-based Shandong Deheng Law Firm is set to be China’s first-ever listed law firm, setting a precedent for more than 20,000 law firms in the country by listing on the Qingdao Blue Ocean Equity Exchange, known as the “Four Board” or the regional over-the-counter (OTC) market in China. 

The firm announced its listing plan last July, and received the official approval from Qingdao Blue Ocean Equity Exchange this Tuesday.  The law firm will officially list tomorrow, according to an announcement.

Shandong Deheng was the first firm to be established by what is now known as the Deheng Law Group. Since then, the group has launched 10 firms across mainland China, including its flagship firm in the national capital, known as Beijing DHH Law Firm.  Shandong Deheng and Beijing DHH operate independently. 

Shandong Deheng aims to raise 40 million to 60 million yuan, or $6.5 million to $9.7 million by selling 10 million shares, according to the filing.  As it is a private placement, the shares currently are only open to the lawyers working in the firm.

Shandong Ya Jun Law firm is acting for Deheng on the listing, and Qingdao Shangdao Investment Company is the sponsor. 

Hu Ming, the managing partner of Shandong Deheng  told ALB that law firms in China and abroad are exploring whether partnership-based entitites can enter list on stock markets. 

“I think more and more firms will now embark on this revolutionary path,” Hu told ALB. “Deheng is not doing this for ourselves; we are doing it for China’s legal industry.”