ISSUE 6.3 CHINA www.legalbusinessonline.com n DEALS ROUNDUP n LATERAL MOVES n IN-HOUSE VIEW n REGULATORY UPDATES n UK, US REPORTS ALB China Law Awards 2009 All the finalists revealed 2009 ALB 中国法律大奖候选人名单揭晓 PRC firms expand overseas Is Hong Kong just the beginning? 香港:中国律所迈向国际市场的第一步 SOEs promote general counsel role A positive message for law firms 国企深入推进企业总法律顾问制度 ALB Special Report: Shanghai 09 Still shining… for now 上海09:化挑战为机遇 最佳雇主 Lawyers name the best firms to work for 律师投票评选出年度最佳雇主 CHINA The Skadden Beijing team
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ISS
UE
6.3
CHINA
www.legalbusinessonline.comn DEALS ROUNDUP n LATERAL MOVES n IN-HOUSE VIEW n REgULATORy UPDATES n UK, US REPORTS
ALB China Law Awards 2009All the finalists revealed2009 ALB 中国法律大奖候选人名单揭晓
PRC firms expand overseasIs Hong Kong just the beginning?香港:中国律所迈向国际市场的第一步
SOEs promote general counsel roleA positive message for law firms国企深入推进企业总法律顾问制度
ALB Special Report: Shanghai 09Still shining… for now上海09:化挑战为机遇
最佳雇主
Lawyers name the best firms to work for律师投票评选出年度最佳雇主
CHINA
The Skadden Beijing team
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2
Editorial >>
ISSUE 6.322
IN THE FIRST PERSON
Growing pains
Last year, it seemed that the champagne corks were popping nearly every week as one foreign firm or another expanded its horizons. China, of course, was and continues to be the prize destination but entry to this particular party is carefully vetted. Other emerging
markets such as Abu Dhabi and Dubai in the Gulf were also popular destinations. Meanwhile, PRC firms, although not claiming international status just yet, have returned the serve with their own expansions, most notably into the US and Hong Kong.
Despite a more subdued outlook this year, “international strategy” and “globalisation” remain the clichés of choice in legal business parlance. But, underneath the familiar buzz words, how consistently do ‘international’ firms apply internal policies across their impressive list of locations. And how truly seamless are their trans-border service offerings?
A story doing the rounds at the moment illustrates the point. A well-known international firm announces redundancies across several of its offices. In one location, angry lawyers complain that their redundancy package is the bare statutory minimum. They demand to know why this is the case when their colleagues in other offices are receiving more generous packages. The response? That the other offices are part of a separate partnership.
Is this approach inconsistent with the concept of a cohesive international firm or simply the reality of managing a multi-jurisdictional operation? When we speak of international firms, are we speaking of one global firm or many associated local operations united by the same branding?
Some firms, of course, have been successful in building a cohesive international practice. Many have not. Chinese firms that are eyeing overseas office openings would do well to focus on exactly what internal management directives will produce that cohesiveness – and stick to them. After all, a truly international practice is built on much more than a long list of cities on the firm’s website.
“Price is definitely an element that we consider when choosing legal advisors but, more importantly, it depends on jurisdiction and what kind of service we need”Julie Zhu, general counsel of AkzoNobel in charge of North Asia (p42)
“There are people out there with cash, but they don’t have any confidence in valuations”Stephen Eno, partner, Baker & McKenzie, on restructuring (p47)
“West China has … more potential for growth compared to the mature markets in the coastal regions”Han Duyun, managing partner, Solton & Partners (p15)
When we speak of international firms, are we speaking of one global firm or many associated local operations united by the same branding?
10 SOEs promote general counselThe move to introduce general counsel into SOEs is paying dividends as legal risk management issues come to the fore
12 PRC firms expand overseasChinese firms are establishing themselves in Hong Kong in growing numbers – but do they have ambitions beyond Greater China?
14 Growth opportunities in West ChinaFirms are stepping up their efforts to serve burgeoning investment in China’s western provinces
FEATURES
40 ALB Special Report: Shanghai 2009 Challenging economic conditions have not dampened the enthusiasm of international or local firms in Shanghai
46 ALB China Law Awards 2009 finalistsAs the industry’s night of nights draws near, ALB China reveals the nominees for the top lawyers, firms and deals for the 2008 calendar year
• SGCCandtwoPhilippinecompanies(collectively, “Consortium”) have bid for25-yearconcessiontooperate,maintainandexpandnationwidetransmission system and electricity gridinPhilippines(“Concession”)
• SGCC’sinvestmentarminHongKong,StateGridInternationalDevelopmentLimited,holds40%ofshareholdinginterestinNGCPwhileremaining60%interestheldbyother two members of Consortium
China/Hong Kong RCG Holdings Hong Kong iPo – equity
Slaughter and May China/Hong Kong China national building material H-share funding raising
302 equity
SyCip Salazar Hernandez & Gatmaitan
China/Philippines/Hong Kong state Grid Corp of China consortium Philippines electricity system bid
3,950 m&a
| CHINA |
li & FunG – liz ClaiboRne ►asset aCquisitionus$83m
Firm: Bird & BirdClient: Liz Claiborne
Firm: JSMlead lawyers:MarkStevens,MartinRobertsonClient: Li & Fung
• Li&FungLtdacquiredsourcing operations of Liz ClaiborneIncandits affiliates in AsiaforUS$83m
Mark Stevens, JSM
Martin Robertson, JSM
| CHINA / US |
tHe CaRlyle GRouP – Hao ►yue eduCation GRouP tRansaCtionus$50m
Firm: Troutman Sanderslead lawyers: Olivia Lee, Coburn BeckClient: The Carlyle Group
Firm: King & Wood Client: The Carlyle Group
Firm: Hawkhigh lead lawyer:Changjian(Kent)ShaoClient: Hao Yue Education Group
Firm: Conyers Dill & PearmanClient: Hao Yue Education Group
Firm: Fairbairn Catley Low & KongClient: Hao Yue Education Group
• GlobalprivateequityfirmTheCarlyle Group has invested in Beijing-basedHaoYueEducationGroup, one of China’s most prominent private higher education service providers
• DealwasshowcasedbyBeijingMunicipalGovernmentastestamenttoBeijing’scontinuedattractivenessas an investment destination
CHina national buildinG ►mateRial H-sHaRe FundinG RaisinGus$302m
Firm: Slaughter & Maylead lawyer: Benita YuClient: China National Building Material
• ChinaNationalBuildingMaterialCoLtdtoraiseapproximatelyUS$302mthroughanaggregateof298,555,032H-shares,pursuantto special mandate granted by its shareholders last year
investment in Hao Yue and also represented Carlyle in respect of subsequentUS$50minvestmentmade by another global private equityfirminHaoYue
| CHINA/SINGAPORE/ HONG KONG |
dbs PRivate equity onsHoRe ►Rmb Fund FoRmationus$100m
• DBSPrivateEquityhassucceeded in formation of US$100monshoreRMBfundbasedinShanghai,namedDBSPrivateEquityEnterprise
• Fund,100%ownedbyDBSBank,willprovidecapitaltomid-to-latestage Chinese companies in growth industries, with a view to eventually listing them on domestic Chinese A-sharemarket
• FundwillinvestUS$10m–20m,onaverage, for a minority stake in each promising Chinese companies over nexttwotothreeyears
• DBSPrivateEquityEnterpriseisoneoffirstfewforeignprivateequityfirms to establish domestic onshore investmentvehicleinPRC
Hubert Tse, yuan Tai
| CHINA/HONG KONG |
at&t – sHell outsouRCinG ►dealus$300bn
Firm: JSM lead lawyers: DavidEllis,WinnieLamClient: AT&T (Asia PacificAspects)
• AT&Ttobeservice provider to Shell in multiplejurisdictionsglobally.ThisismajorsourcinginitiativewherebyShell outsources a significant part of its global technology capability to AT&T,EDSandT-Systems
• Overallvalueofinitiativeestimated
David Ellis, JSM
WS Winnie Lam, JSM
tobeUS$6bn,ofwhichAT&T-related aspects (in relation to whichMayerBrown has acted) estimated atUS$3bn
• JSM,inassociationwithMayerBrown,coordinating implementation of transactioninAsia-Pacificregionthrough its Hong Kong office
Benita yu, Slaughter and May
| CHINA/FRANCE |
FRanCe’s new beijinG ►embassy and diPlomatiC CamPus ConstRuCtionus$33m
Firm: Gide Loyrette Nouel lead lawyer: GuillaumeRougier-BrierreClient: French Foreign Affairs Ministry
• GideLoyretteNouel has advised French State on preparing bidding procedure and drafting construction agreement according to Chinese law and French ProcurementCoderequirements
• Embassywillformpartofnewcampus having all French diplomatic servicesinBeijinginsinglelocation
• Projectworth €€25m(US$32.6m)
guillaume Rougier-Brierre, gide Loyrette
Nouel
| CHINA |
FaCoRn inteRnational – ►yiyanG yuKanG aCquisitionus$9m
Firm: O’Melveny & MyersClient: Acorn
Firm: Concord & PartnersClient: Yiyang Yukang
• AcornInternationalhasacquiredYiyang Yukang Communication Equipment,givingAcornaccessto new mobile products and strengthening its distribution capabilities
• IPICpurchasedfive-yearUS$1.1bnexchangeablebond issued by governmentofPapuaNewGuinea(PNG)throughitsinvestmentvehicle,IndependentPublicBusinessCorporation
• IPICwillacquireIPBC’sentire17.6%equitystakeinOilSearchLimited,becoming largest shareholder
Firm: Zhong Lun 中伦lead lawyers: Zhang Zhong, Fang Lu 张忠、方路Client:XCMG徐工集团
• XCMG,biggestconstruction machinery company in China, has finished restructuring its assets in order to list whole group and getapprovalfromCSRCfor listing proposal
• USprivateequityfund Century Bridge Capital has invested US$19minamiddle-incomeresidential estate projectinXi’an
• TotaldealsizeisUS$41.4m
| HONG KONG |
swiRe PRoPeRties’ Castle ►stePs develoPment Plan aPPRoval
Firm: JSMlead lawyers: FK Au, Alan YipClient: Swire PropertiesLimited
• AsubsidiaryofSwirePropertiesLimited (“Swire”) has succeeded in Court of Appeal in planning case involving Castle Steps Site
• Caseinvolvesapplication to TownPlanningBoard(“TPB”)forrelaxationofheight and plot ratio restrictions on and, hence, an increase in permitted grossfloorareaofCastleStepsSite
• AsaresultofdecisionbytheCourtofAppeal, Swire permitted to develop 54-storeyresidentialbuildingwithaplot ratio of nine on site
• CourtofAppeal’sdecisiononeof most significant planning law decisions in recent years
youR montH at a GlanCe (Cont) ►Firm Jurisdiction Deal name Value (US$m) Deal type
Travers Smith China/Hong Kong RCG Holdings Hong Kong iPo – equity
Troutman Sanders China/us the Carlyle Group – Hao yue education Group transaction
50 m&a
Vinson & Elkins China/us Century bridge Capital Xi’an residential estate investment
41 Construction
WongPartnership Hong Kong/singapore united overseas land – united industrial share offer
1,090 equity
Yuan Tai China/singapore/Hong Kong dbs Private equity onshore Rmb fund formation 100 equity
Zhong Lun China XCmG asset restructuring 775 Restructuring
Does your firm’s deal information appear in this table?Please contact [email protected] 61 2 8437 4700
• Interestratefixedbonds,supplemented with issuer’s option to increase coupon rate at end of fourth year and investors’ option to repurchase, with annual interest rate of6.13%
• US$165.18mofSeniorNotes,representingapproximately58%of Senior Notes outstanding, were validly tendered and accepted for purchaseasatexpirationofoffer
• HongKong-listedNineDragonslargest producer in Asia, and one of largest producers in world, of packaging paperboard products in terms of design production capacity
| CHINA/HONG KONG |
CHina aGRi – CoFCo ►aCquisitionus$141m
Firm: Herbert Smithlead lawyer: MichaelFoshClient: China Agri-IndustriesHoldings (China Agri)
• ChinaAgrihasacquiredHongKong-listedCOFCO’soilseeds and corn processing businesses and related assets for a totalconsiderationofapproximatelyHK$11bn(US$141m)
Michael Fosh, Herbert Smith
• Thiswillbesatisfiedbyissuanceofapproximately264millionsharesinChina Agri and balance in cash
• ChinaAgriisoneofChina’slargestoilseed and wheat processors
FK Au, JSM
Alan yip, JSM
10
NEWS | analysis >>
ISSUE 6.3
Chinese SOEs promote general counsel… and external counsel
ANALySIS
SASAC’s continued efforts to implement a “general counsel system” in state-owned enterprises sends a positive message to law firms
16 GeneRal Counsel aPPointed tHRouGH sasaC’s PubliC ReCRuitment PRoGRam ►通过国务院国资委组织的海内外公开招聘任命的16位企业总法律顾问
Year 年度
State-owned enterprise 国有企业
General counsel 企业总法律顾问
2006 China Eastern Air Holding Company 中国东方航空集团公司 GuoJunxiu郭俊秀ChinaNationalRealEstateDevelopmentGroup中国房地产开发集团公司 XuYongjian徐永建ChinaRailwayCommunicationGroup中国铁通集团有限公司 Sun Yonggang 孙永刚ChinaNationalAgriculturalDevelopmentGroup中国农业发展集团总公司 WuGang吴刚China TravelSky Holding Company 中国民航信息集团公司 LiJinsong李劲松ChinaChangjiangNationalShippingGroup中国长江航运(集团)总公司 Zhao Yufu 赵玉阜
2007 China Chengtong Group 中国诚通控股集团有限公司 TangMingyi唐明毅China National Arts & Crafts Group 中国工艺(集团)公司 ShiYuquan石宇权Sinohydro Corporation 中国水利水电建设集团公司 WangShubao王书宝China National Gold Group 中国黄金集团公司 Su Chaohui 苏朝晖
2008 China Coal Technology Engineering Group 中国煤炭科工集团有限公司 Zhang Zhong 张忠ChinaNationalMachineryIndustryCorporation中国机械工业集团公司 WangQiang王强ChinaIron&SteelResearchInstituteGroup中国钢研科技集团公司 TangJianxin汤建新ChinaP&TAppliances中国邮电器材集团公司 Sun Guangcheng 孙光成ChinatexCorporation中国中纺集团公司 Zhang Hongfei 张鸿飞China New Era Group Corporation 中国新时代控股(集团)公司 Xu Genghong 许耕红
Six years after the government initiated a campaign to implement a “general counsel system” in state-owned enterprises (SOEs),
the majority of the large SOEs have now established an in-house legal function and appointed general counsel.
Many of these in-house departments have thrived and proven their value to senior management in a remarkably short space of time. Legal managers and general counsel in these departments have also earned good reputations in the legal community. The in-house legal teams of CNOOC, Bao Steel and Sinopec, for example, have excelled in providing strategic and innovative legal solutions to enable their companies to achieve business and strategic objectives not only in the domestic market, but also in key markets around the globe.
As part of the campaign, and in an effort to find the most competent candidates for general counsel positions, the State Assets Supervision and Administration Commission of the State Council (SASAC) started an annual public recruitment program to help appoint general counsel for enterprises under its supervision since 2006. So far, 16 central-level SOEs have appointed general counsel through three public recruitment programs.
Last May, a plan to promote general counsel roles in subsidiary companies announced by SASAC marked the beginning of the campaign’s second phase. According to the plan, all important subsidiaries of the central-level SOEs should have appointed general counsel and set up an in-house legal function by 2010.
China Chengtong Group, a large logistics conglomerate which is a central SOE, is one of the first to respond to the new agenda set by the SASAC. Under the leadership of the
group’s general counsel, Tang Mingyi, who was appointed through SASAC’s 2007 public recruitment program, the group recently named Wang Yonghai as the general counsel of its important subsidiary, China Asset Management Corporation (CAMC), which manages more than RMB10bn worth of assets.
Wang has been and will remain a vice-president of CAMC while he serves as general counsel. With 17 years’ legal experience, in-house and in private practice, he is responsible for the management and direction of the company’s legal team and affairs. He reports directly to the president.
As the SOEs are becoming increasingly commercially oriented, international and market-driven, the development of a solid in-house legal function is a good strategy. However, this raises an important question: does the growth of the in-house role translate into reduced business opportunities for external firms?
Three years ago, domestic law firms’ perceptions of this issue would have been very different from now, but in today’s more mature and diverse legal
marketplace the majority answers “no”. According to Dacheng’s senior partner,
Tuo Zhongming, the promotion of in-house legal teams in SOEs will improve the legal service industry. “We see the rise of in-house teams led by a general counsel as a positive and necessary development. As large sophisticated organisations, they do need professional legal management,” he said.
Tuo has extensive experience working with SOEs, particularly on restructuring projects. He has been the main outside advisor for China Asset Management Corporation since 2000. After the appointment of the general counsel, he continues to provide legal support and advice regarding the company’s business operations and strategic planning.
“General counsel and in-house counsel don’t handle all legal matters directly; they are responsible for leading and managing the process,” Tuo said. “The
NEWS | analysis >>
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volume of legal work outsourced to us won’t be lower than before the general counsel was named. But we have to offer more specialised legal services in certain practice areas and improve the quality of our services.”
He explained further that the rising role of general counsel in SOEs is a reflection of where the decision-makers’ priorities lie. Their focus has shifted from litigation to legal risk management. This change in priorities enables law firms to be more involved in SOEs’ strategic planning, business transactions and compliance. In addition, having an in-house legal team in place – in effect formalising the work relationship between clients and external legal advisors – will improve the quality and standards of legal services provided by external counsel.
In the past, due to the absence of an in-house legal team, communication between external counsel and board members and senior management has been problematic and prone to misunderstandings. Having an in-house legal team that can give advice on technical and business issues and can function as an external resource coordinator will help external counsel work more efficiently.
“In-house teams can help law firms to better understand companies’ business needs, and at the same time they can ensure that external advisers are able to provide the best value and legal solutions for businesses,” said Liu Yuming, a partner of Zhong Lun.
Liu and his team recently advised COFCO, a leading grain, oils and foodstuffs import and export group in China, and one of its largest food manufacturers, on its takeover of Wu Gu Dao Chang. Although the firm was instructed by a strategic business development unit, it worked closely with the group’s in-house department during the course of the whole transaction.
“The COFCO in-house counsel has played an important role in interpreting instructions from the business units and transmitting them to the external advisers, ensuring that everyone knows what will be delivered and ensuring matters can be moved along more quickly,” Liu said.
The practices of in-house legal teams and general counsel in SOEs vary, but they are all still in the initial stage of development. However, the campaign, now in its sixth year, is having encouraging results – both for the companies and the law firms they instruct. ALB
NEW FOREIGN LEGAL COUNSEL FOR LONGANAmerican criminal defence lawyer AlanEllishasjoinedLonganasa foreign legal counsel. Ellis, a former president of the National AssociationofCriminalDefenseLawyers(US),hashadalongworkingrelationshipwiththePRClegalcommunity.BeforejoiningLongan, he had taught law at ShanghaiJiaotongUniversity’sSchoolofLaw.
Longanisexpandingitscorporatecriminaldefencepractice and Ellis will assist the firm in advising client companiesexpandingtheirbusinessintotheUSonissues ranging from consumer product safety violation totaxdelinquencyandsecuritieslawviolation.
GALAxY GC JOINS PROSKAUER IN HONG KONG ProskauerRosehasannouncedthatJimChapmanwilljointhefirmasapartnerinitslodgingandgamingpractice group.
BeforejoiningProskauer,ChapmanwasthegeneralcounselofGalaxyEntertainmentGroup,one of Asia’s leading gaming and entertainment companies. He has been involved in some of themosthigh-profilegaming,hotelandresortdevelopment transactions in the region.
ProskaueropeneditsHongKongofficeinSeptember2008,gainingprivateequityandfundsformationpartnerYingLiandChinesebusinessexpertJosephChaafterthecollapseofHellerEhrman.Chapmanjoinsthreeotherpartners,includingYuvalTal, and one associate in Hong Kong.
A senior Herbert Smith partner in Hong Kong recently pointed out that in the past decade most of the corporate work
international firms have done in Hong Kong has had a China element in one way or another. Few would disagree.
Of more interest, however, is that today many PRC firms are using Hong Kong in the opposite direction. In the past few years, they have advised their clients on an increasing number of transactions that involve a Hong Kong element. And Hong Kong has become an important bridge linking them with international markets.
The most recent example is the opening of Beijing Guantao’s Hong Kong office, the firm’s first international base. The firm has been involved in a number of IPOs and listings of PRC companies overseas and a growing number of outbound investments by Chinese clients.
“While Hong Kong remains an important gateway for foreign investment into China, its role as China’s bridge to the world has been increasing significantly,” said Yan
Pengpeng, partner in charge of Guantao Hong Kong office. “Chinese companies increasingly use Hong Kong as a springboard to go overseas.”
Guantao’s arrival has pushed the total number of PRC firms with a Hong Kong branch office to 10. Half of them are operating in association with a local Hong Kong firm, while the rest have formed formal or non-formal alliances with local Hong Kong firms.
Two further reasons that Hong Kong is considered to be a strategic location are that it provides a common ground for law firms from different jurisdictions to closely cooperate with each other; and it offers an attractive international talent pool for PRC firms.
Before opening its Hong Kong office, Guantao had formed an alliance with local Hong Kong firm Jackson Woo & Associates (JWA). Last November, when UK firm Ashurst was opening its Hong Kong office and forging a formal
association with JWA, Guantao was also entering into a non-exclusive alliance with Ashurst. Yan revealed that the Hong Kong office will be a platform for strengthening the firm’s alliance with Ashurst and Jackson Woo & Associates. “It provides a common ground enabling the three firms to collaborate closely and share resources with each other for the clients’ benefit,” she said.
Currently, all PRC firms are registered in Hong Kong as foreign law firms, a status which prohibits them from practising in that jurisdiction. However, a PRC or foreign law firm registered in Hong Kong may elect to convert and change its status in order to be able to practise as a Hong Kong law firm. To do this, it needs to comply with all the same conditions as a local practice, including exclusively appointing Hong Kong solicitors as partners in a locally compliant law firm partnership.
Industry observers anticipate that the integration of King & Wood, the first PRC firm to establish an operation in Hong Kong, with its Hong Kong associate firm Arculli Fong & Ng will be completed this year – the final step in a process that began in early 2006.
In anticipation of the intended integration, King & Wood strengthened its Hong Kong offering by appointing Serge Fafalen, the Swiss founder and managing partner of Hong Kong-registered foreign firm SG Fafalen & Co, as a partner in its Hong Kong office. “PRC laws are following their clients everywhere in the world and expanding to meet client needs,” Fafalen said.
Shanghai-headquartered Duan & Duan is another PRC firm with ambitions to gain a foothold in Hong Kong’s legal market. Even before its Hong
yan Pengpeng, guantao
NEWS | analysis >>
13www.legalbusinessonline.com
CHIOMENTI NEARING SHANGHAI LICENCE AsaconsequenceofthemergerwithBirindelli&Associatilastyear,ItaliangiantChiomentiStudioLegale is only a few months away from gaining a licencetooperateinShanghai.Itwillbethefirm’ssecondmainlandventure,havingsecuredaPRClicenceinBeijingin2007.
The firm has filed an application with the Bureau of JusticeinShanghaiandtheMinistryofJusticeinordertochangethenameoftheBirindelliRepresentativeofficein Shanghai to Chiomenti Studio Legale. At the same time,itisproceedingwiththeliquidationoftheexistingBirindelliofficeinBeijing.
意大利凯明迪将获上海执照 意大利凯明迪律师事务所离获上海代表处正式执照只有数月之遥。这意味着这家意大利最大的律师事务所将获在2007年的北京代表处执照后第二张中国大陆执照。凯明迪上海代表处的执照受益于其去年五月与另一家意大利律师事务所彼林德立律师事务所(Birindelli & Associati)的合并。该所已向上海司法局和国家司法部提出申请,将原来彼林德立的上海代表处变更到凯明迪名下。除了凯明迪,另外还有2家意大利律所在中国设有代表处:Picozzi & Morigi 上海代表处和Lega Colucci E Associati北京代表处。
news in brief >>Kong branch was set up in September 2006, 30% of its annual revenue was generated by advising on Hong Kong-related transactions and investments.
Since the establishment of its Hong Kong office, the firm has experienced an increase in the instructions received from both inbound and outbound clients. As part of its long-term plans, it has formed a strategic alliance with Hong Kong local firm Chan J & Lai and will be converting its Hong Kong office to a local practice after it satisfies regulatory requirements. Thereafter, it will hire local lawyers and partners and advise on Hong Kong law, aiming to increase the contribution of total revenue of its Hong Kong-related practice from the current 30% to more than 50%.
“In the next 10 years, I hope to see the main role of our Hong Kong office as assisting Chinese clients to invest into Hong Kong and set up companies in Hong Kong. Chinese clients are
increasingly regarding Hong Kong as a gateway to enable them to invest globally,” said Gong Xiaohang, the chief director of Duan & Duan, who divides his time between Hong Kong and Shanghai.
However, not all PRC firms share the Hong Kong ambitions of Duan & Duan and King & Wood. Most are content to have a presence in Hong Kong that plays more of a liaison and marketing role for the mainland offices.
“We don’t want to develop our Hong Kong set-up into a full-blown office. We don't plan to advise on Hong Kong and international law in cross-border transactions, and don't intend to compete with well-established players in Hong Kong,” said Kirk Tong, partner at Jun He.
Any apparent lack of Hong Kong ambition aside, firms as sophisticated as Jun He will doubtless have very solid plans in place for expanding outbound lines of fee income. ALB
OBAMA PUTS A LOCKE ON HIS CABINET GaryLocke,whowasco-chair oftheChinapracticeatUSfirmDavisWrightTremaine,hasleftthefirmtobecometheUSSecretary of Commerce.
Locke accepted his nomination byUSPresidentBarackObamaandreturned to public service upon confirmationbytheSenate.HejoinedDavisWrightTremaine in 2005 after two successful terms as the GovernoroftheStateofWashington.
“Gary’s leadership of our China practice has been instrumental to its growth and success,” said Norm Page,partnerandco-chairofthefirm’sChinapracticegroup in Shanghai. “He has successfully helped American companies sell their products and services internationally, particularly in China, and we are sure that he will bring the same level of commitment and dedicationtohisimportantnewrolehelpingallUScompaniesgrowandcreatejobs.”
Inland navigators: all go on the western frontANALySIS
West China is the next hot market, with investors attracted by preferential economic policies, a cheap workforce and abundant natural resources. The region’s legal services market is also maturing rapidly
west CHina: tHe numbeRs ►Asaresultofgovernmentincentivesforprojectsdevelopedinthewesternregion,Chongqingiscontinuing to open up, especially after becoming directly controlled by the central government, says Song Gang,anofficialfromChongqingForeignTradeandEconomicRelationsCommissioninchargeofFDI.“Thespeedofdevelopmentisquickerthanever,”headded.
InChongqing,reckonedtobethefastest-growingurban centre on the planet, there were more than 4,500foreignorjointcompanies,providingmorethan170,000positions,bytheendof2008.OfFortune500companies,102havesetupshopinChongqing,halfofwhichhaveaddedmorethan86subsidiaries and the other half have set up branches or representative offices. The total value of contract reachedUS$15.6bn,withUS$8.7bnalreadyfunded.In2008alone,thecity’sFDIhitahistoricalhighofatotalvalueofUS$2.73bn,a151%increasecompared to the year before.
Chengdu has also achieved similar investment advances in the past year. According to the Chengdu IndustrialandCommercialAdministrationBureau,therewere246newforeigncompaniesregisteredinthecity,withatotalinvestmentvalueofUS$4.74bnfunded,a47.44%increasefrom2007.
Chengduisthefourthcity–afterBeijing,Shanghai and Guangzhou – in terms of the number ofconsulatesithosts.Eightcountries–theUS,France, Germany, Singapore, South Korea, Thailand, PakistanandPhilippines–havesetupconsulatesthereandothercountries,suchastheUK,theCzechRepublicandAustralia,plantolaunchanofficialpresence there soon.
The world’s largest microchip maker, Intel, recently announced it will move its Shanghai factory to Chengdu in order to improve
its cash flow during the financial crisis. Intel is not the only company moving its focus from the developed east coast to the country’s cheaper west region. Many other Fortune 500 companies have plans in place to increase their investment and operations in the western region.
In a changed economic climate, the region’s preferential policies, cheaper workforce, and sufficient raw materials and natural resources are even more attractive to investors looking for opportunities in both the short and long term.
As an encouraging sign to the business and legal community, the China International Economic and Trade Arbitration Commission launched its Southwest Sub-Commission in Chongqing in January to facilitate the region’s strong economic development and active business sector. The new branch will significantly cut down the cost of arbitration for enterprises in the region and boost the arbitration practices in local law firms.
Riding the new wave created by multinationals’ adopting the strategy of moving inland, law firms in the region are geared to reap the benefits.
Currently, there are than 30,000 lawyers practising in about 3,000 firms in the region, with an annual income of approximately RMB2.1bn (US$306.8m). A number of local firms have stood out and become noticeable players on a national scale.
Chengdu-based Tahota, for example, was recently admitted to the membership of Sino-Global Legal Alliance, a network that combines the global resources and international legal expertise of Lovells with the local law capability of specially selected, market-leading local law firms across the country’s key economic regions.
According to Cheng Shoutai, the founder and director of Tahota, more local firms have been growing strongly over recent years.
“With the increase of foreign-related business, the demand for quality lawyers is higher than ever. Our international business group has been one of the many beneficiaries of this western development and has experienced strong growth in the past few years,” Cheng said.
Currently, Tahota has more than
Cheng Shoutai, Tahota
NEWS | analysis >>
15www.legalbusinessonline.com
leadinG loCal FiRms in west CHina ►Firm Headquarters Number of offices Year establishedExceedon&Partners Chongqing 1 1998Dingli Chengdu 1 1995Sifangda Chengdu 1 1993Solton&Partners Chongqing 1 1995Tahota Chengdu 4 2000Zhonghao Chongqi 5 2006
30 lawyers and can undertake work in five foreign languages. With the firm’s international ambition, Cheng revealed that his firm has expanded business to overseas jurisdictions and has plans to open a branch office in Hong Kong.
Solton & Partners, one of the leading firms in Chongqing, is also a Sino-Global Legal Alliance member. The firm’s managing partner, Han Deyun, is attuned to the potential of the regional legal market. “West China has 30% of the country’s whole population, but only around 10% of the overall income of the whole legal market. We have more potential for growth compared to the mature markets in the coastal regions,” he said.
However, while local legal firms are embracing new opportunities, they also
FULBRIGHT & JAWORSKI PROMOTES TWO PARTNERS IN HONG KONG Fulbright&JaworskihaselevatednineseniorassociatesandfourseniorcounselacrossitsUS,DubaiandHongKongofficestojointhefirm’sglobalpartnership.Twoofthenewpartners,ZhangJieofthecorporategroupandBenMcQuhaeoftheenergy& real property group, are based in Hong Kong.
Bothhaveexperienceinadvisingmultinationalclientsinoil&gas-relatedtransactionsandprojects.ZhanghandlesM&Atransactions,jointventures,cross-borderinvestmentsandstructuredfinance,primarilyinvolvingChina,whileMcQuhae’spracticehasaclearfocusonoil&gas,coalandotherenergy-related transactions in Asia.
need to respond to an increased level of competition.
Beijing law firms have been at the forefront of domestic firms establishing a presence in the west. Leading firms, including King & Wood, Kaiwen, Dacheng, Zhonglun W&D and Guantao, have set up branches in cities including Chengdu, Chongqing and Xi’an, and have made an instant impact in the local market with their solid track record of advising large national and international clients.
International and Hong Kong firms are also eyeing the West China market’s potential. Some have forged alliances with local firms, the Lovells-backed Sino-Global Legal Alliance being a good example. Many have been working with local firms on a referral basis for a long time. A number of Hong Kong firms have even established a presence there, such as P C Woo & Co, one of the earliest Hong Kong firms to establish an office in Chengdu. ALB
VINSON & ELKINS BOOSTS ENERGY ExPERTISEAnswering to strong client demands, Vinson&Elkinshasrelocatedseasonedenergyandprojectspartner Gary Kotara from the firm’s DubaiofficetoHongKong.Kotarahasbroadexperienceintheareaof energy business transactions in important markets across the globe.Inaddition,hehasextensiveexperienceinenergyregulationandadministrativelitigation.“Wearecontinuingtoseesignificantlevelsof investment activity in the Asian energy sector, particularlyinvolvinginternationalacquisitionsbyChinese and other Asian companies in the oil & gas and naturalresourcessectors,aswellasanumberofLNG-related transactions across Asia,” Kotara said.
文森•艾尔斯律师事务所提升能源业务服务实力为满足客户需求,文森•艾尔斯律所将资深能源和项目合伙人 Gary Kotara 由迪拜办事处调至香港任职。Kotara 在全球重要市场的能源业务交易领域拥有丰富经验。此外,他在能源监管和行政诉讼方面还拥有深厚经验。Gary Kotara 表示:“我们认为,亚洲能源领域将继续保持旺盛的投资势头,中国和其它亚洲公司在石油、燃气和自然资源领域进行国际收购的项目将尤其突出,整个亚洲地区与液化天然气相关的交易亦会不断增加。”
areas of international arbitration, litigation, anti-trust, Foreign Corrupt Practices Act (FCPA) investigations and auditing, and risk management in the area of anti-commercial bribery. Zhou, previously a member of Heller Ehrman’s IP litigation practice group based in Shanghai, will focus his practice on patent prosecution and litigation at MWE China.
The six newly elected partners are Jacqueline Cai, David Dai, Ken Huang, Leon Liu, Jack Ma and Molly Qin. Their practices focus on various areas including M&A, IP, international and domestic dispute resolution, labour and banking & securities law.
SHANGHAI
MWE China partner hires signal expansion plans Shanghai-based MWE China Law
Offices has taken a major step towards expanding its partnership. The firm has appointed nine new partners through its first partner intake since it was established in 2007. Of the new partners, three are external hires and six are internal promotions.
The new lateral hire partners are Helen Zhang, Henry Chen and Joseph Zhou. They had all worked with leading international firms for many years before joining MWE China.
Zhang joined from Singapore firm WongPartnership’s Shanghai office, where she was a partner. Her practice focuses on insolvency, intellectual property, M&A, real estate and renewable energy. Chen joins from Baker & McKenzie’s Shanghai office and has extensive experience in the
Helen Zhang, MWE China
REGIONAL
New Asia head for Freshfields after three-year gap Freshfields has appointed partner
Simon Marchant as its new Asia managing partner, a position which has been vacant for three years.
Marchant, a London-based M&A specialist, will transfer to the Hong Kong office later this year. He will take over the role that was vacated when partner Perry Noble stepped down in 2006. Marchant said the appointment was made because the position had gained more relevance over the years.
“Recently, the emphasis for us in Asia has been on building the business on a country-by-country basis, focusing on the dynamics of
the local markets,” Marchant said. “That has been hugely successful. But our clients are increasingly looking to us to help them across the region and, indeed, inter-regionally. That, combined with the increasing size of our business in Asia, has led us to conclude that now was the right time to reinstate the regional role.” ALB
news in brief >>KOREA TAKES FIRST STEP TOWARDS LEGAL MARKET LIBERALISATION The Korean government will allow foreign law firms from some Free Trade Agreement (FTA) signatory countries to set up local consultancy offices as early asSeptemberthisyear.Ithasindicatedthatfullmarketliberalisationcouldoccurby2016.
The move comes in anticipation of a full legal market liberalisation pursuant to free trade agreements signed withtheUSandASEAN,andnegotiationsarecurrentlyunderwaywithAustralia,theUAEandEUnations.
AspokesmanfromKorea’sMinistryofLawsaidthattheintentionofthebillwasnottoprovidejobopportunities for foreign lawyers but to upgrade the local legal industry.
SJ BERWIN GETS READY FOR ASIA MOVESJBerwinispreparingtolaunchitsfirstAsianofficeafterhavingappointedDanielLiew,formerDewey&LeBoeufHongKongco-head,asitsAsiamanaging partner.
The firm is currently waiting for permission to set upanofficeinHongKongasaforeignlawfirm.ItsHong Kong office will focus on fund formation, private equity,infrastructure,corporateM&A,litigationandreal estate law.
ROUNDUPNortonRose’sincomingchairman,StephenParish,recentlyrevealedplanstosteerthefirmtowardsa•USmerger,sayingthataNewYorkofficeisessentialforanyinternationallawfirmSimmons&SimmonshasdecidedtosplititstwoPortugueseoffices.Simmons&SimmonsRebelode•Sousa, a firm of five partners and about 70 fee earners, is no longer part of the firm, although it will continue as an alliance partnerIanMcDonaldhasbeenchosentoheadMayerBrown’seight-partnerinsolvencyteaminLondon,taking•overfromLondonlitigationheadDavidAllenandfinancepartnerIanColesCliffordChancehasdecidedtoleasepartofitsCanaryWharfofficestoKPMGin2009–10for£4m.The•accountancyfirmhasalreadymovedaround1,000stafffromitstaxandpeopleservicespracticeinto93,000sqftonthe16th–19thfloorsof10UpperBankStreet.Fullrelocationissetforautumn2010
Linklaters tops renewable deals tally MagicCirclefirmLinklatersrecentlymadeitsmarkin the renewable energy sector, coming in at the number one spot on the InfrastructureJournal deals listafteradvisingon13dealsworthUS$5.87bn.
Top Spanish firm Garrigues came in second on the value rankings, but took first place on the largest volume of deals in the sector overall with 33transactions.USfirmMilbanktookthirdplace,advisingon15dealsworthUS$3.8bn.
Slaughters slashes rates SlaughterandMayhasswitchedtoa‘valuebilling’system and abandoned hourly rates in an effort to provideclientswithafixedfee.Thenewfixedratemethod sees the client and firm agreeing on fees in advance, whereby an estimate is agreed upon based on “realistic assumptions”.
The Silver Circle firm, which won a place on ITV’sfixedfee-onlypanel(thefirsttobemadeup of firms that do not charge by the hour) last October, is also trialling a discount policy, whereby lower rates are offered for deals that fail to complete.
DLA set to cut again DLAPiperinitiatedaredundancyconsultationinFebruarythatissettoslash30lawyersand110supportstafffromthefirm’sUKoffices.
Although no trainees will be affected, the firm hasrequestedanumberofthoseduetostartin2009todefertheirstartdatesuntil2010.
Lovells launches redundancy program Lovell’shasjoinedthelistofUKfirmsmakingredundanciesinearly2009,despiteasteadyfinancial performance going into the recession.
The firm recently launched a redundancy consultationwhichwillseeupto94Londonstafflosetheirjobs:thesecouldbe18lawyers,43supportstaff,27secretariesandsixprofessionalsupport lawyers.
Those lawyers in the dispute resolution, business restructuringandinsolvency,IPandpensionspractices escape the cut, but support staff across the board will be affected and the firm is said to be retaining78%traineesfromthespringqualifiers.
Freeze hits White & Case London Followinga4.8%dropinglobalprofitperequitypartner(PEP)duringthe2008calendaryear,White& Case’s London arm recently implemented a hiring and salary freeze in a bid to reduce costs.
The firm has decided to keep associate salaries at current levels – even associates moving from one year’spostqualificationexperience(PQE)totwowillnotreceiveapayrise.White&Case’sLondonofficeactuallysawa4%hikeinrevenueearlyFebruary–uptoUS$245.9m.
Second redundancy consultation hits Simmons Simmons & Simmons recently began a second round of redundancy consultations, putting 20 associatesandupto49secretarialandsupportstaffatriskoflosingtheirjobs.
The practices most affected are capital markets, banking,projectsandrealestate;35secretariesand12–14professionalsupportstaffrolesarealsounder threat of redundancy.
SHANGHAI
MWE China partner hires signal expansion plans
REGIONAL
New Asia head for Freshfields after three-year gap
“Given the current economic crisis, many law firms have had to lay off people due to a slow down in business. Fortunately, we have been able to buck that trend and – although the pace may have slowed – we are still hiring people,” said John Huang, MWE China’s founding and managing partner.
Huang attributes his firm’s growth to its unique practice platform, which attempts to seamlessly integrate MWE China’s local knowledge and expertise with the global network and resources of its strategic alliance partner, US firm McDermott Will & Emery.
Due to the economic crisis, many local firms have also found more candidates from foreign law firms’ representative offices in China knocking on their doors. ALB
news in brief >>DLA PIPER CUTS 54 IN ASIA RESTRUCTURINGDLAPiperisrestructuringitsAsiaofficesinamovethatsaw20ofitsAsia-basedlawyersmaderedundantbytheendofMarch.
Thefirmannouncedthat54staffmembers–20feeearnersand34supportstaff–acrossitsAsiabusinesseswillbecut.Mostofthecutsarebelievedto affect the Hong Kong office, in the aftermath of several partner departures.
TheannouncementmakesDLAPiperthesecondmajorinternationalfirmtodeclarecutsspecificallyaffecting its Asia offices. A similar move was made by Allen & Overy, which is restructuring its Hong Kong office following partner defections.
PRIVATE COMPANIES LOSE ENTHUSIASM FOR GROWTH THROUGH M&A AND IPOSA recent survey by Grant Thornton revealed that privately held businesses are less interested in growingthroughacquisitionsandpubliclistingsdueto the current market conditions.
According to the Grant Thornton International Business Report 2009, the number of private businessesinthePRCintendingtomakeacquisitionsfellby26%comparedto2008,andbusinessesplanningtoundertakepubliclistinginthenextthreeyearsfellby40%.
The findings of the report match the current feelingsofthelegalprofession.ManylawyerswhospecialiseinM&AandcapitalmarketshaveexperiencedaslowdowninM&Atransactionsandlistingplans,andnotedthatnewprojectsareharderto come by than in previous years.
Cases involving financial disputes, real estate disputes, company share-holdingreform,transferofstockownership,foreign-relatedand maritime disputes
1,140,000 up15%
Marketdisruptioncases 21,674 up13%
L itigation levels are rising rapidly – this was the message recently delivered by the country’s top judge Wang Shengjun in a report to the National People’s
Congress. In 2008 alone, Chinese courts handled 10.71 million cases, around 11% more than in 2007. This is due partly to legal reforms facilitating litigation and partly to more legal cases occurring independently of the changes brought by the legal reforms.
In the civil sector, the fastest growth is occurring in labour disputes, followed by cases involving health care, housing and consumer rights.
Due to the economic downturn and the adoption of the new Labour Contract Law, labour dispute cases exceeded 286,000 last year, which is almost double the 2007 figure.
Financial disputes, which account for around 10% of the total cases completed, have seen a 15% increase, exceeding one million.
Intellectual property right infringement cases are also in the top five, with a one-third increase. Between 2003 and 2008, China launched a number of special campaigns to rectify and standardise intellectual property protection. Wang has also stated that Chinese courts will severely penalise IPR infringement. ALB
Herbert Smith re-hires partner Herbert Smith has announced that former partner Jeremy
Xiao has returned as a consultant to the firm. Xiao will work out of the firm’s Beijing office on a part-time basis.
Xiao previously left the firm to take up the role of managing director with Credit Suisse in 2007. Before joining Credit Suisse, he had worked in Herbert Smith for more than 10 years as a partner, including five years as managing partner of the firm’s Beijing office. Landmark deals he has advised on include the multi-billion-dollar IPOs of Sinopec, China Construction Bank and ICBC.
He will retain his role at Credit Suisse in addition to his new appointment with Herbert Smith. A source at the firm said that Xiao would focus on supporting the development of the firm’s 20-partner Greater China practice, including helping to further strengthen the top-tier practice’s relationships with a number of China’s leading multinationals. ALB
Jeremy Xiao, Herbert Smith
NEWS >>
19www.legalbusinessonline.com
us report
ROUNDUPDewey&LeBoeufhasshutdownitsSanFranciscoofficeandissettocombineitsBayArealegalandsupport•staff following the shutdown BakerBottshasdefiedtheoddsandposteda6.16%increaseinglobalrevenueforthepastfinancialyearfrom•US$577min2007uptoUS$613min2008.PEPatthefirmisalsoup4.6%fromUS$1.3mtoUS$1.36min2008USfirmDebevoise&PlimptonrecentlyrecruitedGeorgeWBush’sfinalattorneygeneralMichaelMukaseyand•alsoformerUKattorney-generalLordGoldsmithNewYorkfirmKramerLevinNaftalis&Frankelhasannounceditwillbemaking18lawyersand21support•staff redundant due to the impact of current economic conditionsSimpson Thacher & Bartlett is ready to launch in Brazil following the find of a permanent office space for lead •partnersToddCriderandJaimeMercado,withroomforafurtherfiveassociatesandonemorepartnerDechertlost10stafflawyerstoredundancylastmonth,inthefirm’ssecondroundoflayoffs,givinginsufficient•workflowasthecauseMorrison&Foersterrecentlyputafreezeonassociatesalariesandcutitsassociatediscretionarybonusestoas•lowasUS$6,000for2008
Dewey revels in revenue increase WhileaverageprofitperequitypartneratDewey& LeBoeuf has remained relatively steady at US$1.57m,thefirmrecentlyrevealedaminorrevenue increase for the 2008 financial year.
GrossrevenuefortheUSfirmgrew2.1%fromUS$1.008bnin2007uptoUS$1.03bndespiteoffice closures in Austin, Charlotte, Hartford andJacksonville.
Ashurst enters the US Ashursthasrevealedplanstolaunchfee-earningofficesinWashingtonDCandNewYork,followingthehireofa11-partnerstructuredfinanceteamfromlong-timeUSnicheallyMcKeeNelson.
ThiswillbeafirstfortheUKfirmwhichuntilrecentlyhadanon-feeearningpresencein New York.
Orrick set to slash jobs Justafewmonthsafterslashing75associates,counselandsupportstaffacrossitsUS,AsiaandEurope networks, Orrick has revealed plans for another redundancy program that could see up to 12%ofthefirm’sassociatesandofcounsellaidoff.
Itisreportedthatabout300peopleacrossthefirm’sUS,AsiaandEuropeofficesareinthefiringline, with the firm citing the world economic crisis, its impact on clients and levels of activity in the world market as catalysts for the cut.
McDermott slashes staff McDermottWill&Emeryrecentlyletgoofassociatesand89supportstaffacrossitsUSoffices as the credit crunch continues to make its mark.
The layoffs follow reports of static profit per equitypartnerfiguresatUS$1.52m,anda1.2%dropinrevenuefromUS$978min2007toUS$966mlastyear.
PEP falls among US firmsUSfirmsarefeelingtheeffectsoftheeconomicdownturn,withprofitperequitypartner(PEP)figuresatanumberoffirmsbelowpar.AveragePEPatLatham&WatkinslastyearstoodatUS$1.8mcomparedwithUS$2.27min2007andthefirmposteda21%dropinaveragePEPforthe2008financial year.
ThecollapseofDavisPolk&Wardwell’scorefinancial services markets has hit hard, with averageprofitperequitypartnerfalling15%toUS$2.05min2008,despiterevenuegrowthforthesameperiodremainingatUS$767m.Similarly,whilerevenueatPaulHastingsincreasedby1%toUS$986m,thefirm’s2008financialresultsrevealedprofitsperpartnerfellby1%toUS$1.9m.
ProfitperequitypartneratSullivan&CromwellremainedataroundtheUS$3mmark,cementingthe firm’s position as the current most profitable full-serviceUSlawfirm.
Capital’s firms taking lead in securities workFor the first time, the China Securities Regulatory
Commission (CSRC) has ranked law firms by the volume of securities work they have undertaken. CSRC recently released the 2007 capital markets legal advisor league tables as part of its report on the development of the domestic legal services market for securities matters in 2007.
The clear trend was the dominance of Beijing firms, as only a few Shanghai firms and one Fujian firm made the rankings. King & Wood, for example, dominates in two of the three tables, namely the number of IPOs advised upon and by advice on offshore offerings. Jingtian & Gongcheng, another Beijing-headquartered firm, leads in the ranking of top advisers on follow-on offerings. ALB
On the back of China’s growing appetite for energy and resources,
the Hong Kong Mercantile Exchange (HKMEx) has been established to bridge the gap between the international commodities markets and China.
It provides an efficient and transparent pricing platform for end-users and the global trading community to trade tailor-made contracts, hedge pricing risks in China and across the region, lower transactions costs and increase participation by Chinese and international commodities traders.
To ensure its smooth and efficient operation and the implementation of its future growth strategy, the new exchange has appointed Ann Cresce as general counsel and head of compliance.
“Ann’s appointment adds more depth to our team as we continue building Hong Kong’s commodities exchange,”
said HKMEx chairman Barry Cheung. “Compliance is a critical element for ensuring the integrity of the exchange and we are extremely pleased to have someone of Ann’s calibre join us.”
Cresce is responsible for managing all legal and regulatory functions for HKMEx. Cresce joined from the Chicago Climate Exchange (CCX) where she was senior vice-president and general counsel, overseeing all legal affairs pertaining to domestic and foreign business development, corporate matters, regulatory issues, intellectual property, and human resource issues related to CCX and the Chicago Climate Futures Exchange.
“Nothing better anticipates the future in the exchange industry than the establishment of a commodities marketplace in Hong Kong. I am very excited about the prospects for
HKMEx,” Cresce said. Before her time at CCX, she was director of compliance and assistant general counsel at IntercontinentalExchange, Inc, where she was responsible for the development of regulatory compliance programs under US and UK regulatory regimes. ALB
toP 10 PRC FiRms: by numbeR oF domestiC iPos and listinGs ►Firms Volume RankKing&Wood 30 1
aviation Passenger accident insurance in China: History, Change and administration. a Continuing quest for Perfection
Aviation Passenger Accident Insurance (APAI) in China originated in the Interim Provisions on the Compensation for the Personal Injury of Domestic Aviation Transport Passengers in 1998. In reviewing
the supervision and management of APAI by the China Insurance Regulatory Commission (CIRC), we may divide the history into three stages.
During the first stage (1998–2002), APAI applied uniform provisions issued by the People’s Bank of China. At this time, the CIRC was required to focus on organising spot inspections and the strengthening of punishments concerning the violation of laws and regulations effecting control and regulation of APAI market order. The focus was a product of troubling issues, such as: the compulsive sale of APAI with tickets or other relevant insurance; counterfeit policies; and the embezzlement of premiums by agents or staff of insurance companies.
The second stage was from 2003 to 2006, during which time the CIRC issued several specific notices on the reformation of APAI. The notices required insurance companies to issue their policies by computer, establish system networks and separately perform accounting practices. Meanwhile, the CIRC issued timely new APAI guiding clauses for the reference of insurance companies. The clauses differed from the former clauses as they were not deemed compulsory.
Upon the issue of the Notice of Issues Concerning Strengthening the Management of APAI (hereafter referred to as the “Notice”) by the CIRC in 2007, the guiding clauses of APAI were abolished. Abolishing the clauses indicated the coming of the third stage of the CIRC’s administration of APAI. Although the previous uniform provisions and guiding clauses brought positive effects for the steadiness of the APAI market, expectations were not met as these limited the independent business operation and the creativity of insurance companies. Additionally, the extremely low probability of an APAI accident encouraged negligent views of catastrophic hazards resulting in the impairment of insured parties’ benefits. Dealing with the abovementioned issues, the newly issued Notice made the adjustments below.
First, returning the right of APAI product development and pricing to insurance companies, allowing the adjusting function of the market system to be exerted adequately.
Secondly, requiring insurance companies to establish inner networks, issue policies by computer and perform real-time management. This ensures clients’ information is completely recorded and in a timely manner.
Thirdly, requiring insurance companies to arrange reinsurance for their APAI.
Finally, encouraging insurance companies to develop and improve their APAI and relevant products to satisfy societal needs.
With the enforcement of the latest regulation, each insurance company actively creates and provides integrative vehicle accident insurance with a more extensive scope of protection and lower prices. New products provide consumers with additional choice and help perfect a number of inherent defects in traditional APAI products, including the narrow protection scope and short duration.
Zhan Hao
Dr Zhan Hao, Managing Partner Grandall Legal Group Beijing Office Tel: 010-65890699 Fax: 010-65176801 E-mail: [email protected] Web: www.grandall.com.cn
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NEWS >>
ISSUE 6.3
While the possibilities of the Comprehensive Economic Cooperation
Agreement (CECA) between the mainland and Taiwan are still being widely debated, Beijing-headquartered Dacheng has already taken steps to assist clients in cross-Strait trade, investment and business development.
Three months after the firm established The Cross-Strait Legal Service Center in Shanghai, a joint initiative of the firm and the Taiwan All-China Federation of Industry and Commerce, Dacheng has masterminded a new approach for expansion.
A firm named Taiwan Dacheng Law Firm has been established in Taiwan, managed by Dr Lai Laikun, dean of the Institute of Law at Hsuan Chuang University. This local partnership is a separate legal entity from Dacheng but will serve as the Taiwan branch of the firm. The two will share resources, branding and IT infrastructure, and will have the same standards for client service and quality control.
“The two sides will work seamlessly as one firm to
uPdate >>
international tax
mPFa quarterly statistics as at 31 december 2008
The Hong Kong Mandatory Provident Fund Authority (MPFA) publish regular quarterly statistics on MPF and Occupational Retirement Schemes, and the latest figures to 31 December 2008 are set out below and are
contrasted with the figures to 31 December 2007.The number of employers in Hong Kong for both MPF and
ORSO schemes declined during 2008; and the value of MPF accounts on average declined by 23%.
The MPF scheme in Hong Kong was introduced in 2000; and after nine years of performance it is time the Hong Kong government initiated a formal review; especially as there has been some suggestion that the MPF framework will be used for funding health care in Hong Kong in future.
employers 9.2m 7.9memployees 261,156 222,250 total value 247,912m 228,269m
Exempted schemes no values known
mPF SchemeSSummary 31 December 31 December
2008 2007MPF scheme
No.employers 238,000 239,000 employees 2,175,000 2,130,000 average of no. employees per scheme
9.1 8.9
MPF scheme
av. Value 2008 av. Value 2007HK$
Per employer 880,185 1.1mPer employee 96,314 124,313 Total value all schemes 209,484m 264,786m
By Debbie Annells, Managing Director, AzureTax Ltd, Chartered Tax Advisers Suite 1010, 10/F Lippo Centre, Tower Two, 89 Queensway, Hong Kong www.azuretax.com, a member of AzureTax Group (Tel) +852 2123 9339 (direct line), (Main Line) +852 2123 9370, (Fax) +852 2122 9209 Registered with the Chartered Institute of Taxation for purposes of anti money laundering legislation.
Companies get tough on IP infringementsAs companies respond to the tough market conditions
by cutting budgets, law firms have seen a significant reduction in demand for patent filings and prosecutions. However, firms still expect growth in IP litigation, enforcement and licensing work.
“In boom times, some companies didn’t pay enough attention to some infringement problems, and didn’t have time to realise the commercial potential of their IPRs. Now, the quiet time gives them an opportunity to adjust their IP strategy and planning and reap more economic benefits from their existing IP portfolios,” said Jay Sha, a partner of Liu Shen & Partners.
Another noticeable trend is that judicial damage awards for IPR violations are increasing.
“The volume of IP litigation has increased in recent years… the damage awards in infringement cases are rising and increasingly punitive,” said Gordon Gao, a partner of
NEWS >>
23www.legalbusinessonline.com
TAIWAN
Dacheng activates innovative cross-Strait partner schemeprovide a one-stop service for clients in cross-Strait trade, investment and business development,” said Wang Guangming, Dacheng’s managing partner in Shanghai and the vice-director of the The Cross-Strait Legal Service Center. ALB
In preparation for the flourishing of cross-border trade, Xinjiang Gonglian, a law firm based in Urumqi, is now
busy preparing to open a branch office in Bishkek, the capital city of neighbouring Kyrgyzstan. The new office is expected to open in May. Gonglian will be the first PRC law firm to establish an office in Kyrgyzstan.
In the past few years, the legal market has been growing steadily in Urumqi. By the end of 2008, Urumqi had more than 600 lawyers in 57 firms.“In recent years, we’ve seen many opportunities in the legal sector stimulated by the cross-border trade between China and central Asia,” said Zhang Jianwu, director of Xinjiang Gonglian. “Moving forward, the potential is huge, with more and more disputes arising in business activities.”
In 2008 alone, Xinjiang’s total import and export levels hit a historical high, exceeding US$22bn. Regarded as the bridgehead for trade ties with Central Asia, Xinjiang’s trade dominates the mid- and west China regions, and ranks number 11 in trade of China’s provinces.
The autonomous region has borders with eight countries – Mongolia, Russia, Kazakhstan, Kyrgyzstan, Tajikistan, Afghanistan, Pakistan and India – and trade ties are already well established with more than 100 different countries and regions. There are approximately 6,000 trading companies in Xinjiang, most of which are based in Urumqi.
Various governments are committed to boosting this region’s economy. For example, China and Kazakhstan have set up an international trade cooperation area, with both assigning 14.3 square kilometres for development and use by joint ventures.
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Regulatory
China’s new Guidelines on m&a loans
To facilitate Chinese companies in their domestic and international expansions through merger and acquisition (“M&A”) activities in light of the global financial crisis, the China Banking Regulatory Commission (“CBRC”)
promulgated the Guidelines on Risk Management for Loans Extended by Commercial Banks for Mergers and Acquisitions (the “Guidelines”) on December 6, 2008.
The Guidelines lifted the prohibition on the provision of acquisition loans by commercial banks in a M&A transaction set out in the PRC General Lending Rules issued in 1996. Qualified PRC incorporated commercial banks are now permitted to conduct M&A loan business and provide acquisition financing to PRC incorporated purchasers, whether such purchasers are purely domestic or foreign-invested.
An “M&A transaction” means a transaction in which a Chinese incorporated company acquires or obtains actual control of a “going concern”, whether through purchases of existing equity interests, subscription of newly issued capital, acquisitions of assets or assumption of debt. Thus banks are continued to be prohibited from extending financing to greenfield investments or non-control type acquisition.
Before extending an M&A loan, the lending bank must meet, among others, a number of risk management requirements such as the following: (1) the outstanding amount of M&A loans should not (a) exceed 50% of the lending bank’s core net capital, or (b) 5% of the bank’s core net capital for any single borrower; (2) the loan should not account for more than 50% of the total funding for any M&A transaction; (3) the term of any M&A loan should not exceed five years; (4) adequate security has been obtained from the borrower and (5) internal review procedures have been instituted to monitor the performance of the M&A loans. In addition, the lending banks must analyze the industrial or strategic correlations between the acquirer and the target to the proposed transaction before extending such loan. Thus it is questionable whether M&A financing is available to non-strategic investors, such as private equity or venture capital funds.
It is expected that the Guidelines, which came out at a critical time, will encourage business consolidations in China by strengthening financial support for M&A transactions. While the Guidelines seemingly open the door for leverage buy-outs in China, there are still many practical questions left unanswered. Doubts and concerns remain on the immediate effects of the Guidelines on China’s M&A market, as most Chinese banks lack the sophisticated risk evaluation, pricing and management system to take up the M&A lending business.
Written by Qi Xu and Iris Wang Paul, Weiss, Rifkind, Wharton & Garrison Unit 3601, Fortune Plaza Office Tower A No. 7 Dong Sanhuan Zhonglu Chao Yang District, Beijing 100020, PRC Email: [email protected][email protected] Beijing Ph: 8610-5828-6300 Hong Kong Ph: 852-2536-9933
Iris Wong
qi Xu
XINJIANG
Foreign trade helps Urumqui market evolve
NEWS >>
25www.legalbusinessonline.com
lawyeRs and law FiRms in uRumqi: 2008 ►Number of lawyers Number of law firmsMorethan30 221–30 511–20 13Fewerthan10 37596 57
toP Five uRumqi FiRms by numbeR oF ►lawyeRs: 2008
Name of law firm Number of lawyersXinjiangXinghe 47XinjiangGonglian 40Tian Yuan Shuang Yi 29XinjiangDingXinXuYe 28Baifeng 27
“International companies are starting to show their interest in Xinjiang, and many companies from Japan, Germany, Italy, South Korea and the US hope to use Xinjiang as a springboard for entering central Asia,” said Zhang Jianwu.
“But, as a local inland firm, we will try to use our geographic and language advantages to shine in the regional market, rather than trying to expand to south or east China where the legal market is more competitive.” ALB
news in brief >>LAWYERS LEND HAND ON PRO BONO PROJECT Volunteersfrom13internationallawfirmsrecentlyspent a day at Crossroads Foundation’s premises inTuenMun,HongKong,participatinginsomeprobono work of a different kind.
The130volunteersformedteamstoworkontasks such as painting containers and walls, laying interiorflooring,loadingacontainerwithhouseholdfurnitureforthoseinneedinIsrael,andhelpingwithadministrative office work.
Allen & Overy initiated and participated in the event. The other participating firms were Baker &McKenzie;Clyde&Co;DavisPolk;Freshfields;Mallesons;MinterEllison;Morrison&Foerster;Orrick;PinsentMasons;Skadden;Weil,Gotshal&Manges;andWhite&Case.
On 27 December 2008, the sixth plenary of the 11th NPC Standing Committee passed the Decision to Amend the Patent Law of the
People’s Republic of China. The amended law will take effect on 1 October 2009. One significant area of progress is the improvement made to the compulsory licence regime for the exploitation of patents. It will be instrumental in balancing the interests of patentees and the public, and in allowing for the effective implementation of the Anti-monopoly Law.
Currently, Article 48 of the Patent Law provides, “where any entity qualified to exploit an invention or utility model patent has made requests for authorization from the patentee of an invention or utility model to exploit its or his patent on reasonable terms, and such efforts have not been successful within a reasonable period of time, the patent administration department of the State Council may, upon the application of that entity, grant a compulsory license to exploit the invention or utility model patent”. It means a compulsory licence can be granted just because a patentee refuses a request
for authorisation or does not authorise exploitation within a reasonable period. It is inconsistent with the general principles of the patent law and most countries’ patent laws do not contain such provisions. Due to its lack of operability, no compulsory licence has ever been granted under this article.
The amended Article 48 runs, “the patent administration department under the State Council may, upon the application of an entity or individual qualified to exploit a patent, grant a compulsory license to exploit an invention or utility model patent in any of the following cases: (1) the patentee, without reasonable cause, has not exploited or fully exploited its patent for three full years after the granting date or four full years after the application date; (2) the patentee has executed its patent right in a way which is legally determined as a monopoly, and the negative impact on competition has to be removed or reduced”. It becomes evidently more reasonable. A compulsory license may only be granted where a patentee abuses its exclusive rights (no implementation, no authorisation or monopolisation of the market).
In addition, the provision becomes easier to
operate after the amendment because it: (1) defines “reasonable period of time” as “three full years after the granting date or four full years after the application date; (2) provides that for public health purposes, the patent administration department under the State Council may grant a compulsory licence to produce patented pharmaceuticals and export them to countries or regions in accordance with relevant international treaties to which the People’s Republic of China is a party; (3) provides that where a compulsory licence is granted to an invention patent for semi-conductor technology, the exploitation of the patent is limited to purposes benefiting public interests or reducing monopoly; and (4) stipulates that compulsory licences shall be exploited mainly for supplying the domestic market.
Pinsent Masons builds bridges with tender triumphAfter a two-month tender process, the
Pinsent Masons consortium of law firms has been appointed to provide legal services for the Hong Kong–Zhuhai–Macau Bridge project.
The other members of the Pinsent Consortium are Jun He, TeamWin Law Firm (Guangdong), and DSL Lawyers (Macau).
Large infrastructure projects inevitably attract great attention from law firms. When this bridge project launched a public tender for legal counsel in October last year, the response was overwhelming, with eight consortia consisting of 23 law firms bidding for the project.
The bridge will span 36 kilometres, combining tunnels and bridges, and a number of facilities on artificial islands, at an estimated overall cost of about US$5.6bn. It is also extremely complex from a legal perspective, as it will cover three legal jurisdictions governed by
three different legal systems – the PRC, Hong Kong SAR and Macau SAR.
In the initial stage, the Pinsent Consortium’s main role is to prepare the inter-governmental agreement between the three governments. The firms will also design the legal framework for the organisation that will form the employer party.
The main team members of the Pinsent Masons team working for this project will be Dean Lewis, Lynia Lau and John Bishop. The Jun He team will be led by partner Audrey Chen. ALB
King & Wood snares Sino-Korean practice expert FormerDehengseniorpartnerXuChangrong has made the move toKing&Wood.Xu,whoheadedtheKoreateamatDeheng,will continue his Korea focus in theareasofFDI,M&A,projectfinance,andtheacquisitionanddisposalofnon-performingloans.
various Llinks
Llinks welcomes trio of new members Llinks, one of the ALB China “Employer of Choice” firms, has attracted three senior lawyers to its fold.
The firm has announced the addition of Calista Huang and Sandra Lv to its partnership, and theappointmentofRobertXiaasa counsel.
lateRal HiRes ►name leaving Going to Practice location
Huang, who has more than 10years’practiceexperienceincapitalmarkets,hasjoinedthecapital markets practice group. Lv, promoted to partner at ShanghaiYuantaisixmonthsago,hasleftthatfirmtojoinLlinks,bringing her core team members. Lv and her team specialise in providingfunds-andassetsmanagement-relatedlegal services. Newly appointed counsel RobertXiahasworkedwithinternationalfirms,
JC Master builds up litigation muscleNanjing-basedJCMasterhasre-hiredformerassociateZhuWeijiangasapartnerfromitslocalrivalJinDingPartners.BeforejoiningJinDingin2007 as a partner, Zhu had been anassociateatJCMaster since 2000.
Zhu, who started his legal career working in courts, is now apartnerinJCMaster’slitigationpracticegroup.He specialises in labour disputes, construction, enforcement and intellectual property protection. Hehasbeenalegaladvisorformorethan10companies,includingSuzhouGenjoetradingcompanyandNanjingInternationalHotel.
WhytheswitchtoKing&Wood?“AcompetentfirmhandlinghighlevelKorea-relatedworkshouldbeheadquarteredinBeijingorShanghai,haveabusinessnetwork under unified management and be highly specialised.ButthereareonlyafewPRCfirmsthatmeettheseconditions,”saidXu.“It’sparticularlyanachievementforKing&Woodtohavethislevelofmanagement system in the current China market where most firms are of a very loose partnership.”
Deheng lures US lawyer to head international teamDehenghasluredLiuJiqing,formerresidentpartner
and chief representative of Baker&Daniels’Beijingrepresentative office, to lead its international team.
Since starting his legal career intheUSin1992,LiuJiqinghasmainlyfocusedonChina-relatedcross-borderinvestment,M&Aandinternationaltrade.Inasign of the increasingly global nature of the firm’s operations and the Chinese legal market, Liu is the firstforeignlawyertobehiredbyDeheng.
Despite the current economic climate, funds in China have experienced significant growth as a result of a series of new regulations and policies
coming into effect. After the issuance of guidelines to be
followed by each “fund of venture capital funds” in late 2008, it has been estimated that such a fund may raise funds of RMB100bn and consequently enable RMB1trn to be invested in the venture capital market. Instead of making venture capital investments directly, the mission of a fund of funds is to support the development of venture capital funds.
Of all the available structures for onshore Sino-foreign RMB funds, the cooperative joint venture structure that has a non-legal-person status is preferred by investors, since it has many attributes similar to those of an offshore limited partnership structure. However, only a limited number of funds had adopted this structure by late 2008 when the Ministry of Commerce (“MOFCOM”) speeded up the approving process. Furthermore, in March 2009 MOFOCM delegated the power of approval for funds with total capital not
exceeding US$100m to its local branches and shortened the approval period to no more than 30 days. This is expected to encourage increased onshore RMB fund investment.
Financial institutions have become key fund market players through the opportunities presented by a range of new rules and policies. These include:•TheChinaSecuritiesRegulatoryCommission
has approved, on a case-by-case basis, the making of direct equity investments by more than 10 securities companies, provided that certain requirements are met, including net capital in principle not less than RMB2bn; at least 10 underwriting projects or a total underwritten value of at least RMB15bn in the last three years. Once approval is received, a separate subsidiary needs to be established to conduct and operate the direct equity investment.
•TheChinaInsuranceRegulatoryCommissionhas permitted insurance companies to invest in unlisted enterprises since November 2008. Many insurance companies have already shown great interest in this area and plan to set up private equity subsidiaries. However,
they may need to wait until the implementing rules are issued before they can proceed.
•InDecember2008,theChinaBankingRegulatory Commission permitted qualified commercial banks to provide loans for merger and acquisition transactions as long as the banks meet certain requirements. In March 2009, MOFCOM issued a new rule
which greatly simplifies the approval procedure for most overseas investment activities and shortens the approval period to three days. Consequently, more Chinese companies are expected to get involved in fund formation as a sponsor or limited partner.
Finally, it is important to note that the China economic stimulus plan launched in late 2008, which will encourage an increase of investment in many areas, will also generate significant opportunities for fund participation.
Fund Investment Seeing Significant Growth in China
Pengpeng (Grace) Yan,Partner Guantao Law Firm Suite 1002, 10/F, 3 Garden Road, ICBC Tower, Central, Hong Kong T: +852 2878 1130 (HK) / +8610 6657 8066 (Beijing) Email: [email protected]
29www.legalbusinessonline.com
30 ISSUE 6.3
Guantao presses ahead with strategic plan in turbulent economic times
If the year 2008 is to be remembered, it will surely be as the year Beijing successfully hosted the Olympic Games. For Guantao Law Firm, 2008 was also a significant year
for the firm’s development, as it established branches in Xiamen and Hong Kong, took on eight new partners, and strengthened its expertise and skills in its core practice areas.
The global financial crisis has become a major challenge to sustaining growth for many firms, but Guantao has gone from strength to strength regardless of the changed business climate.
Guantao now has nine offices across major economically developed regions in China, and a staff of over 250, including 40 partners and more than 100 attorneys. It is highly regarded by clients and peers, and enjoys a particularly strong reputation in the areas of capital markets, M&A and corporate finance. The firm has also emerged as a new heavyweight in the private equity sector.
“Having full-service capabilities, a close-knit team of partners and a focused and integrated management of resources, we are in a better place during the current economic slowdown,” said partner Xiao Hongming. “And we are strengthening our offerings in core practice areas and expanding our geographical presence with the aim of better assisting our clients to achieve their business goals in this challenging time.”
A team-oriented practiceGuantao’s unique management approach encourages and allows efficient collaboration across different offices and practice groups. A special Business Development Committee, consisting of executive committee members and managing partners of branch offices and practice group heads, has been set up to ensure each client’s instruction is taken care of by a team of partners and lawyers drawn from all offices who have the most appropriate knowledge and experience.
Guantao’s role in Datang Telecom Technology’s US$171.8m investment in Semiconductor Manufacturing International Corporation (SMIC), a company listed on both HKSE and NYSE, is a good demonstration of the firm’s inter-office cooperation and the teamwork performed by practice groups.
In this transaction, Guantao acted for the investor using a team of its best lawyers selected from several practice groups including capital markets, M&A, international investment and intellectual property in its Beijing, Shanghai and Chengdu offices.
“As transactions today are increasingly complex and involve operations across a growing number of regions, it’s essential for us to be able to provide seamless services across practice groups and regions,” said Cui Liguo, Guantao’s managing partner.
Having this approach, Guantao has been praised by many of its clients for its cost-effective, result-driven and high-quality services.
going internationalDriven by growing client demand for cross-border advice and services, Guantao has opened its first international location in Hong Kong. The new office is headed by partner Yan Pengpeng.
“While Hong Kong remains an important gateway for foreign investment into China, its role as China’s bridge to the world has been increasing significantly. Chinese companies increasingly use Hong Kong as a springboard to go overseas,” said Yan.
As Guantao’s domestic clients are increasingly participating in overseas capital markets and making investments into foreign countries, the new office provides Guantao and its clients greater access to and connection with the global markets, particularly in Europe.
It also provides a platform for close cooperation between Guantao and other leading international service providers of the region, particularly collaboration with its strategic alliance - Hong Kong firm Jackson Woo & Associates and UK firm Ashurst.
“The Hong Kong office will strengthen our alliance with Jackson Woo & Associates in association with Ashurst. It provides a common ground, enabling the three firms to collaborate closely and share resources with each other for our clients’ benefit,” said Yan.
Xiamen, another new addition to Guantao’s national network, is also a strategic location for the firm’s international practice. Located in one of the country’s most important port cities, the Xiamen office will play an important role in developing the firm’s shipping and international trade practices.
The close proximity between Xiamen and Taiwan also provides Guantao with opportunities to facilitate the increasingly strong economic ties between the mainland and Taiwan.
Development of expertiseIn addition to its geographical expansion and headcount increase, Guantao continues to carve its position as a leader in the
31www.legalbusinessonline.com
Firm Profile Guantao Law Firm
Guantao presses ahead with strategic plan in turbulent economic timescorporate legal market. It achieved yet another fruitful year in 2008, despite the market in general suffering from a significant drop in transaction volumes.
The firm has been involved in a number of major deals, highlights of which include: advising the Financial Street Holding on its issuance of the 5.6 billion corporate bonds on 22 November 2008; acting as the legal counsel for the underwriter in the restructuring of Shannxi Coal and Chemical Industry Group, in which the Shaanxi Coal & Industry was set up with high-value assets to prepare for its future listing; and advising
on Jinduicheng Molybdenum Group’s restructuring and Jinduichen Molybdenum’s IPO and listing, which raised RMB8,914.66m.
As the private equity sector in China remains the most active in Asia, Guantao has built up its private equity practice and enjoys a growing reputation in this niche market.
A competitive edge of its private equity practice lies in the firm’s capabilities on the fund formation side. It is one of the first PRC firms to offer fund formation legal services to domestic and international private equity houses. The firm has been actively involved in a number of fund formations,
including setting up different types of onshore RMB funds and offshore funds for China investment.
“Leveraging our solid experience in advising IPOs and M&A transactions, combined with our expertise in tax and regulatory issues, our private equity group can handle all aspects of the private equity business, a true one-stop shop,” said Cui.
Owing to its outstanding performance in 2008, the firm has been nominated for five awards at the 2009 ALB China Law Awards, including Beijing Law Firm of the Year and China Law Firm of the Year.
Cui Liguo, managing partner
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ISSUE 6.3
The message from many experienced legal professionals is loud and clear: “We are having our first ‘winter’ ever in
the legal service market”. Law firms in the more developed
jurisdictions – such as the US, the UK, Japan, Hong Kong and Singapore – have experienced a number of business cycles. But firms in China, which were enjoying the country’s fast economic growth for foreign inbound investment until six months ago, are having, for the first time, to face the hard truth about declining client demand and business activity.
One of the main challenges over the last few months has been maintaining a healthy bottom line without damaging staff morale in a changed business climate.
Many firms are actively responding to the first downturn, readjusting business models and reassessing staffing needs. But at the same time they are trying to ensure employees’ needs are satisfied to keep them motivated and producing quality work.
Tightening the firm budget has become very difficult to do at the same time as keeping staff assured and keeping business structures stable. As a consequence, the ALB Employer of Choice Survey 2009 has particular relevance.
The firms that led the pack this year as the country’s top employers have come to the forefront for several reasons but, as the data clearly
CHINA
In challenging times like the present, firms need to keep a close eye on resourcing levels and expenditure. It’s harder than ever for firms to balance the books while ensuring their staff are happy. The huge number of responses to this year’s ALB Employer of Choice Survey has revealed which firms are meeting this challenge most effectively
METHODOLOgy ►ThisonlinesurveywasconductedbetweenDecember2008andFebruary2009.Itwassenttomorethan20,000lawyersintheAsia-PacificandGulfregions,including over 5,000 in mainland China.
EMPLOyERS OF CHOICE:WHAT LAWyERS SAy“Fit is all important. meshing into the culture of a firm can make your life a misery or a delight, given the number of hours you spend at work”
“the support and independence available to me in managing my work and assignments and developing client relationships is also very important”
“quality of work is the most important factor; however, my personal growth as a professional would be the other thing that i would consider...”
“Firm culture is indicated by the type of people firms take in. so if you know a few people working at the firm already, and they seem to be your type of people, that’s a great sign”
INTERNATIONAL FIRMS1. skadden 世达2. jones day 众达3. Paul Hastings 普衡4. allen & overy 安理5. white & Case 伟凯
PRC FIRMS1. King & wood 金杜2. jun He 君合3. allbright 锦天城4. wang jing & Co 敬海=5. llinks 通力=5. deheng 德衡
ALB EMPLOyER OF CHOICE 2009
FEaturE | employer of choice >>
33www.legalbusinessonline.com
demonstrates, compensation (at least in the current environment) may not be as important as it once was.
Firms’ culture and management, the quality of work they can guarantee lawyers, the partners and senior lawyers who will train junior lawyers and the programs firms provide to ensure lawyers’ professional development have all become very important for attracting and retaining top talent.
Still room for growthIn an economy which is still growing, although at a slower rate, domestic firms are facing difficulties that differ from their international counterparts.
One of the main difficulties for partners in leading firms is a work culture that is becoming more clinical. So what is a firm to do? Gong Jun, managing partner of Jun He, one of this year’s Employers of Choice, provided some insight.
“In the past, when the firm had a lower number of staff we behaved very much like a family. We ate together, worked together, had fun together,” he said. “Now that we are becoming much bigger it’s difficult to behave like before. Now we pay more attention to the strategy, to make sure our employees are happy to work here. We pay the maximum social welfare, and when we have a good year we make sure we share the profits by increasing salaries and benefits. We make sure they grow with the firm.”
But as 2009 isn’t looking as though it will be a “good year”, how does a firm maintain morale? “We realised this at the beginning of the year, so we held a meeting to give all employees’ representatives a promise to ensure that we will not cut their benefits first; rather, partners will take losses in the beginning, unless it threatens the survival of the firm. You want to make sure the people want to work here. They won’t produce quality unless they’re happy,” said Gong.
Llinks partner Michael Mei said that another effect of the crisis is lawyers from international firms are knocking on domestic firms’ doors. “As the downturn in the economy has affected every sector, we have had more candidates from foreign law firms’ representative offices in China approach us, especially the
AllBright
Deheng
Jun He
Wang Jing & Co
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ISSUE 6.3
mid to senior level associates,” he said. Bucking the layoff trend, the firm has added three senior members to the firm, two joining as partner and one as counsel.
With competition between domestic firms still heated, why should lawyers choose Llinks over another? “Llinks offers a better picture for our employees to be promoted,” said Mei. “Everybody working at Llinks has a very clear picture of their professional training – what level they are at and will be in the next year.” An attractive salary package doesn’t hurt either, it seems. “We provide an above average generous salary package, I believe, at the high end of the domestic firms. Also, only a few domestic firms have regular training. We believe in a very good training system, weekly, relevant and updated.”
Although the talent pool is larger than before, the demand for top talent still outstrips the supply. “There is still a shortage of high-calibre candidates with the right skills and expertise to meet high-end clients’ demand,” says Zhu Linhai, managing partner of AllBright, another EOC firm. Although AllBright has slowed its recruitment, the firm endeavours to keep its staff intact and to avoid layoffs. To do that, it has shifted resources from some quieter practice groups into ones that are currently active, such as dispute resolution, restructuring, M&A and debt market. While the average salary level stays roughly the same as it was last year, some outstanding associates in the firm have even been given a pay rise.
Zhu also believes that AllBright’s focus on providing lawyers with a clear career development plan and a transparent career path, coupled with its effort to continuously improve office environment, make the firm a more desirable employer.
Deheng Law Firm is the only regional firm – ie, not originating from the three major commercial centres of Beijing, Shanghai and Guangzhou – voted as an Employer of Choice. Founding and managing partner Luan Shaohu attributes the firm’s success to its strategic plan that will see Deheng relocate its headquarters from Qingdao to Beijing.
In the past year, the firm has increased the headcount in its Beijing office significantly by adding a number of senior lawyers with international
Allen & Overy
King & Wood
Llinks
Skadden
FEaturE | employer of choice >>
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experience and by expanding its practice groups.
International firms take pride in quality of workAs a reflection of the market conditions, recruitment in international firms has nearly come to a halt. News about international firms’ layoffs and salary freezes continue to make global headlines. It could be a more challenging time for international than for domestic firms, particularly those that have expanded their China offices aggressively in the past two years.
However, many international firms that have experienced many business cycles regard being flexible and able to align revenue with expenses as critical strategies for surviving a downturn. “Cost cutting and contingency planning are naturally among the methods that successful firms use during difficult times,” says Simon Black, Allen &Overy’s Shanghai managing partner.
To keep business buoyant in the current economic climate, Black suggests that firms need to look at their practice
focus and business models and shift resources into active areas such as restructuring and dispute resolution, and outbound investment. “We are not immune from these challenges, but we have benefited from investments in such counter-cyclical areas during the good times,” says Black.
One of the top five international firms to work for in China according to this year’s survey, Allen &Overy gives its views on what makes for a good
employer in a downturn: “We provide our lawyers meaningful work opportunities, one of the reasons they join a firm like ours. People may change their jobs for attractive packages, but will stay because of interesting work, a professional work environment, personal relationships and career opportunities. If the firm is not successful in all aspects, compensation alone cannot be the saviour,” says Black.
All five EOC international firms agree that the primary criterion for a
White & Case
Llinks Law Offices is a leading PRC firm specializing in banking and financial services, corporate and commercial, M&A and capital markets. Llinks provides local expertise and international services, helping clients achieve their business objectives in China and abroad.
Llinks Law Offices is proud to be named ALB Employer of Choice in China
Clients choose Llinks because we: • regularlyhandlecross-bordertransactions,including“first-in-class”and“best-in-class”
good employer today is a firm’s ability to provide its associates with the opportunity to work on high-quality transactions and cutting-edge issues. All have demonstrated that ability in the past year. Skadden Arps, for example, represented Coca-Cola Company in its proposed US$2.5bn acquisition of Huiyuan Juice Group.
“The associates we want to hire are the ones who want to be involved in the most challenging and complex transactions out there. So for us
partners, it is essential to bring in these good and interesting deals and have them available for our associates to work on,” says Jon Christianson, a partner at Skadden in Beijing.
White & Case’s Beijing managing partner Li Xiaoming shares this view, and adds that associates have higher job satisfaction levels if given an opportunity to work closely with clients.
“Our emphasis is on providing our lawyers with the opportunity to
work on high-quality transactions, where the associates work directly with the partners, get regular feedback, and assume a large amount of responsibility,” says Li. “We also provide our associates with the opportunity to work closely with clients, giving them a unique perspective of the decision-making processes undertaken by these clients in transactions. This close involvement with senior lawyers and clients enables associates to feel a sense of ownership
in the transactions that they work on, and enables them to develop business opportunities for the firm and develop their own careers.”
A few years ago, training and development programs provided by international firms had been a main reason for young talent to join them. Although firms’ commitment in formal training programs still helps improve their reputation as employers of choice, associates are demanding more on-the-job training for career development.
“The best way to learn is by working closely with experienced colleagues. On-the-job training is what associates like the best … ” says Christianson. “We are not only providing them with interesting work but also strong support from partners and other colleagues.”
Christianson adds that a team approach is another important feature of an employer of choice and is valued by a firm’s associates. “Younger lawyers tend to be increasingly team oriented. To suit the way they
like to work, firms need to be more collaborative and foster a team approach across different offices and practice groups.”
Today, it is an employer’s market, but many firms find they have to compete even harder for the best and brightest talent. The key trends that emerged from the ALB Employer of Choice Survey may help law firms, lawyers and recruiters better understand the current legal recruitment market and make good and wise decisions. ALB
AllBright Law Offices are delighted to be named the Employer of Choice
in China By ALB.
Special thanks to our clients and staff for their continuing support.
ShanghaiAddress: Hong Kong Plaza 28th Floor, No. 283 Huaihai Middle Road Shanghai, P.R.China 200021 Tel: (8621) 2326-1888 | Fax:(8621) 2326-1999 Please send your CV to [email protected]
Address: Citigroup Tower, 14/F, 33 Hua Yuan Shi Qiao Road, Pudong New Area, Shanghai 200120, P.R.ChinaTel: (8621) 6105-9000 | Fax: (8621) 6105-9100 Please send your CV to [email protected]
grant thornton award insolvency & restructuring law Firm of the Year
insurance law Firm of the Year
CCH award iP law Firm of the Year
shipping law Firm of the Year
tax & trusts law Firm of the Year
CHINA’s LEADING LEGAL EVENT OF THE YEAR
the 6th annual alB China law awards will be held on 24th april 2009 in shanghai. this extravagant, black-tie gala event is the most highly regarded platform for recognizing success and achievement in the legal industry. the awards will deliver the most comprehensive view of players in Chinese legal services. and submissions for Deal of the Year, Firm of the Year and in-house legal categories are now open.
Contact our dedicated alB awards team for more information about making a submission or to join in celebrating the excellence of China’s legal industry.
law FirM Categories (Cont)rising law Firm of the Year
offshore law Firm of the Year
west China law Firm of the Year
north east China law Firm of the Year
Zhejiang law Firm of the Year
Jiangsu law Firm of the Year
tianjin law Firm of the Year
shenzhen law Firm of the Year
Hong Kong law Firm, PrC office of the Year
guangzhou law Firm of the Year
Porsche Centre shanghai award shanghai law Firm of the Year
lexisnexis award Beijing law Firm of the Year
gieves & Hawkes award Managing Partner of the Year
The booms and busts of Shanghai’s economy have been undeniably affected by the weight of the sinking global
financial markets. That does not mean, however, that law firms have been discouraged from exploring more opportunities in Shanghai, a magnetic city that attracts people from throughout China and the rest of the world. Indeed, more domestic and international legal players continue to arrive in the mainland’s most exciting city with each passing month.
Each challenge provides an opportunity to stand out above their rivals. In the legal profession, the situation is the same. For highly qualified, well-experienced lawyers, making a move to Shanghai is always a choice worth considering, regardless of the global economic situation.
Even so, the legal market of Shanghai is not yet mature enough to be an international financial hub, after only about 20 years of development. It faces the double-edged sword of competing with a market as free as that of Hong Kong while remaining close to the authority of Beijing. In succeeding in this, Shanghai displays its unique advantage in dealing with numerous privately owned entities and foreign investments in the region. The future still looks bright for Shanghai, even in a world of economic gloom.
International firms remain adventurous Despite the ongoing economic downturn that is impacting the region, international firms have continued to expand in China, where the effects have been relatively smaller. That remains especially true in Shanghai. By the end of 2007, there were 103 foreign law firms that had representative offices in Shanghai – some 60% of the total 177 in China. (There were also 67 in Beijing, three in Guangzhou, two in Shenyang, and one each in Dalian and Chongqing.)
Hong Kong firms also endeavoured to boost their presence in the Yangtze Delta region. By the end of 2007, 66
The global financial crisis has not diminished law firms’ passion for the country’s most cosmopolitan and fast-paced city. Rather, it provides a timely opportunity for ambitious firms in this up-and-coming financial centre to prepare for a new wave of competition. ALB China investigates
inteRnational FiRms witH liCensed RePResentative oFFiCes in sHanGHai ►Year A – H I – P Q – Z2009 Chiomenti(IT)(expectedtogain) Loeb&Loeb(US)(planstoopen) WilmerHale(hasapplied)
Note: 1. Year of international firms’ licence approved by the end of 2007, according to www.moj.gov.cn Notice No. 78 released on 25 January 20092. ALB China counts 2008 until the date published
42
SpECial rEport | Shanghai 09 >>
ISSUE 6.3
at this stage. Some even anticipate encouraging growth in team size in the near future. They have made internal transfers from other regional offices and hired laterally from international law firms and leading local law firms in the region. However, there is little hope for any salary increase for employees.
Australian firm Mallesons Stephen Jaques, for example, transferred partner Martyn Huckerby from Sydney to Shanghai to head the region. Now Mallesons’ Shanghai office has seven lawyers under Huckerby’s leadership, with five assistant staff – a relatively condensed team.
“Our growth in mainland Shanghai has been very significant compared to three years ago,” Huckerby says. “We have also planned for continuing growth in terms of accommodation of staff in our current premises in Shanghai, but now we may take it a bit slower. For those that expanded too aggressively in size in the past three years, now would be a difficult time.”
International firms are experiencing more pressure in competing with both overseas counterparts and local firms, especially faced with the current market sentiment. Many multinationals are cutting their budgets for legal services and taking a slower approach to M&A. “People are more cautious about investment now and new projects take more time to come out,” says David Boitout,
Hong Kong firms had representative offices in 13 cities in China, Shanghai dominating with 18 of those offices. The remaining 48 were in 12 different mainland cities.
In 2008 alone, four well-known foreign firms – Bird & Bird, Cuatrecasas, K&L Gates and Miller Canfield – gained government approval to open an office in Shanghai.
This year, more firms are planning to enter the Shanghai market. Italian firm Chiomenti Studio Legale, for example, is only a few months away from gaining a licence to operate. It will be the firm’s second mainland venture, having secured a PRC licence in Beijing in 2007. (PRC regulations stipulate that foreign firms need to have operated in China for at least three years before opening an additional office. Chiomenti is eligible for a licence by virtue of its strategic merger with Sino-Italian firm Birindelli & Associati last May.)
US firm Wilmer Hale has applied for a licence to open a new office in Shanghai; it opened its Beijing office in 2004. In addition, other main international firms without an office in Shanghai, such as Loeb & Loeb, have also expressed interest in showing a presence. They will be more cautious in moving to the next step, though. The pace of future expansion will not be as quick as it has been in the past. However, Shanghai is still the key market in Asia-Pacific, according to Luigi Bendi, Chiomenti partner in charge of the firm’s Asia team.
Many firms that ALB China spoke to said their Shanghai offices at least are not cutting staff
HonG KonG FiRms witH liCensed RePResentative oFFiCes in sHanGHai ►Year A – H I – P Q – Z
Note: Year of Hong Kong firms’ licence approved by the end of 2007, according to www.moj.gov.cn Notice No. 79 released on 25 January 2009.
partner at Gide Loyrette Nouel in Shanghai, who specialises in acquisitions and corporate restructuring matters. “However, thanks to our traditional business and existing clients, we have managed to keep our staff without redundancy until now. Some of our team in Shanghai, like the taxation team and labour team, are quite busy now, because of the adoption recently of new regulations of contracts, and M&A and corporate lawyers focus on liquidation and restructuring matters, due to the economic downturn.”
The global financial crisis does influence clients’ choice of firms as they are increasingly cost conscious. For low-risk work, they are more willing to consider local PRC firms whose fees are more competitive than those of their international counterparts. But when it comes to high-risk work, international firms are still used more often.
Shanghai-based Julie Zhu, general counsel of AkzoNobel in charge of North Asia, recently told ALB China that the company’s budget for legal services was cut by 10% in China. However, this was still the lowest percentage of cuts when compared to other regions.
“Price is definitely an element that we consider when choosing legal advisors but, more importantly, it depends on jurisdiction and what kind of service we need,” Zhu says. “For global transactions, we have a list of international firms that we traditionally use. For domestic asset transfer or paper preparation, we usually choose local top-tier firms such as AllBright in Shanghai and Jun He in Beijing.”
Martyn Huckerby, Mallesons
Luigi Bendi, Chiomenti
Studio Legale
David Boitout, gide Loyrette
Nouel
alb CHina’s toP 10 sHanGHai loCal ►law FiRms (by numbeR oF lawyeRs)
Rank Firm Managing partner
Total lawyers
1 AllBright Shi Huanzhang 2062 Grandall
(Shanghai)GuanJianjun 110
3 XinMin JiangJing 854 Haihua Yongtai Yan Xuehai 755 Brilliance YuJianguo 626 Zhenghan WuYugang 607 TrustJustice Zheng Xingfu 588 United Zhu Hongchao 579 JunYue Liu Zhengdong 5610 Shenda
PartnersTaoWuping 53
43www.legalbusinessonline.com
HaoLiWen casts leadership in a new light
It has been just one-and-a-half years since ALB China first reported on the rise of HaoLiWen PRC Attorneys (HaoLiWen) for its fast growth from 2003 to 2007, but this
Shanghai-based firm brings new surprises. The firm has been prepared for the global financial crisis and ready for sustainable growth. “Our goal has been to strive to maintain sustainable growth, not just to survive the global financial crisis,” said Deming Zhao, partner of HaoLiWen. This competitive edge of HaoLiWen is due to its early adoption of strategic planning and integration.
Diversity and specialisationAs a leading legal business firm, HaoLiWen has been providing corporate, commercial and litigation services to multinationals. With its core business being corporate practice, HaoLiWen has been supporting the China operations of multinationals on a daily basis, acting essentially as in-house counsel for most of its clients. John Huang, a Yale graduate, and Ni Jianlin, an ex-official from the foreign investment approval authority in Shanghai, co-lead the corporate practice group, the largest team in HaoLiWen. This corporate business still functions well in the global crisis.
From its general corporate services, HaoLiWen started to consolidate and integrate special expertise in 2006, and has established specialist practices in customs practice, intellectual property, dispute resolution and employment. The customs practice group, led by Deming Zhao, advises clients regarding import and export duty matters, customs regulatory compliance and company defence in customs investigations. This practice is somewhat unique in the China legal market where very few law firms have such a sizable customs practice.
HaoLiWen’s intellectual property (IP) practice group is headed by Zhang Yan, an ex-judge of Shanghai immediate court who is experienced in IP and commercial adjudication practice. With Zhang Yan on board in early 2008, HaoLiWen’s IP practice has been greatly boosted. Zhang has been also a leader of the dispute resolution group. With the blend of IP and litigation skills, clients have been rewarded with good administrative and legal remedies with respect to IP protection and litigation. HaoLiWen
recently successfully helped a multinational in its brand protection measures in China.
HaoLiWen also has a number of attorneys who have impressive expertise in daily employment services and labour arbitration and litigation. Deming Zhao, with both in-house experience with Kodak and domestic and international firms, supervises this practice group. “Currently, our IP and litigation groups are the busiest ones in this firm. We acted early enough to develop and establish these special practices, which ensures sustainable growth and helps us in navigating through the downturn stream of the global economy.”
A tale of three citiesHeadquartered in Shanghai, HaoLiWen also has offices in Dublin and Chicago. John Huang is the resident partner of the Chicago office, and Shelly Xiong the resident partner in Dublin. Shelly and John have been responsible for giving legal support to Chinese companies who are interested in cross-border transactions in Europe and the US. Ireland has been functioning as the investment hub for business operations in Europe. “The placements in Europe and America are ready to honour their mission at the time when Chinese companies tend to be more eager to invest abroad than before,” says Huang.
HaoLiWen’s concept of qualityQuality means providing client’s satisfaction and ensuring regulatory compliance. HaoLiWen has achieved client satisfaction through “employing litigation skills in consulting services and consulting skills in litigation”. When providing consulting advice, we are able to identify REAL legal risk, given our rich dispute resolution experience and familiarity with the possible legal treatment and outcome of these issues should litigation occur in the future. We would ask what arguments may be available to our client and the counterpart if the matter were litigated or arbitrated. Consequently, we are able to offer practical solutions to real risks.
In representing clients in arbitration or litigation proceedings, we also take a commercial approach to legal issues, making pre- and post-hearing business exposure
assessments and enabling clients to make necessary commercial decisions either pre- or post-hearing. Such a distinctive combination of litigation and consulting skills and practical problem solving approach explains our clients’ satisfaction. “If a firm has the capability to identify and solve real legal risk and enable clients to make commercial decisions on legal issues, the firm can be said to provide value-added service.”
A transparent culture“We cherish attorneys as the most important assets of the firm and therefore we are trying to implement a system that can make attorneys happy.” As we understand the nature of a lawyer’s work, there is no obligatory attendance for all lawyers and work hours in HaoLiWen are flexible as long as the annual working hours can be achieved. HaoLiWen has an “open door” policy, which means all partners are obligated to maintain open communications with the firm’s other lawyers, and management and operation issues can be smoothly communicated between lawyers including partners. “Lawyers can feel they belong to the firm rather than a certain partner.” In addition, HaoLiWen transactions and market position analysis are communicated to all members of HaoLiWen on a monthly basis. And the firm’s financials have been transparent to and accessible by all partners; the firm releases financial reports on a monthly basis. “Transparency facilitates mutual trust and the concept of a united firm, and in turn benefits promotion of the HaoLiWen brand.”
However, the firm does not plan to increase the size of its practice significantly in the near future. “It’s about quality over quantity,” said Zhao Deming. “The most important thing is to have a quality team providing quality service. That’s what we are always pursuing.”
HaoLiWen has a number of domestic and international clients across a wide range of industries covering pharmaceutical, clean energy, steel, shipping & aviation, real estate, chemical, retail, motor and insurance, to name a few.
Local firms on the move: quality not quantity countsWhen talking about surviving redundancy, Li Zhiqiang, from local firm Jin Mao Partners, says: “There is still a shortage of good candidates with enough skills that may meet high-end clients’ demand. In Shanghai, I would say that there are not many local lawyers who can really be called high-level legal professionals.”
Li’s opinion concurs with that of a number of other lawyers interviewed by ALB China. Zhu Linhai, managing
partner of AllBright, says: “Local firms may feel pressure when providing services in the high-end market due to a lack of high-end local legal professionals who may be able to deal with the high-end corporate work, arbitration, and cross-border merger and acquisition.”
In a market that is still evolving and growing, legal practice is quite different from that in mature jurisdictions. Local lawyers usually work individually by keeping close connections to clients, rather than by building contacts on a team basis. It often depends on the reputation of individual lead lawyers, rather than firm brands. Thus, in practice, a firm’s size is not always a primary consideration.
Some small and medium-sized firms have ambitions to expand rapidly. Other firms do not. “Our staff size [about 40 in total] hasn’t changed much in the past two years. I believe that this staff level is enough to weather the market storm in Shanghai,” says Zhao Deming, managing partner of HaoLiWen. “We are not pursuing
expansion in quantity, but paying more attention to the quality of our team by hiring a few specialist level partners.”
Jin Mao Partners, which has around 55 legal practitioners, seven of whom are partners, is considered to be one of the fastest growing local firms in Shanghai. Other fast-growing firms are HaoLiWen, Han Yi, Martin Hu & Partners, MWE China, Sloma & Co and Zuo Quan. All are of a similar size but each focuses on maintaining a quality team.
Some of these firms were founded by ex-partners of larger local firms. For example, Jin Mao Partners was founded by ex-partners of Jinmao; Martin Hu & Partners by an ex-partner of Boss & Young; and Zuo Quan by an ex-partner of Co-effort.
Jin Mao Partners’ Li believes that a new firm with a condensed size and selectively picked members has a greater possibility of earning a higher margin. “The financial crisis means a reshuffle of the legal market. Establishing a new firm means a
Top five Beijing law firms ►in shanghai (By numBer of lawyers)
Rank Firm Managing partner
Total lawyers
1 King & Wood Zhang Yi 104
2 Zhong Lun Qiao Wenjun 81
3 Dacheng Ji Jianqing 79
4 Jun He Li Qi 62
5 Longan Peng Xigen 31Note: Tables 3 and 4 do not purport to be exhaustive. Firms are ranked by total number of lawyers. Number of total lawyers is according to www.lawyer.org.cn as of 23 March 2009.
Martin Hu & PartnersContact UsAttorneys at Martin Hu & Partners (MHP Law Firm)
have long been retained by well-known multinational companies and recognized by legal communities for their professional, efficient and often innovative services for clients since 1999.
Corporate and Commercial Mergers & AcquisitionsEmployment and Labor
EducationTaxReal Estate
Intellectual PropertyLitigation and ArbitrationInternational Trade
artin Hu & Partners maintains both the international level of professional disciplines and the on-the-ground understanding of Chinese markets and extensive knowledge of industry-specific issues needed to handle complex cross-border transactions involving China.
M
MHP Ad.pdf 4/1/2009 12:04:12 PM
chance to build a new team with the right expertise and adopting the right management,” he explains.
Taking on the big two: Shanghai vs Beijing and Hong KongThe maturity of Shanghai’s legal market is not quite yet commensurate with its position as the next major financial and commercial centre in Asia. It is not yet a market as free as that
a ComPaRison oF lawyeRs (2009) ►City Total population Number of lawyers Number of
law firmsLawyers as % of the population
Beijing 17million 15,234 1,072 0.9%
Hong Kong 7 million 7,200 – 1.03%
Shanghai 19million 9,741 890 0.5%Note: Number of lawyers and number of law firms are according to www.bmla.org.cn, www.lawyer.org.cn and www.hklawsoc.org.hk as of 20 March 2009.
of Hong Kong, nor is it as close to the authorities as that of Beijing. However, in its own way, Shanghai is pioneering a new model of legal services in the Greater China region and the space to grow is seemingly boundless.
In Shanghai, firms are focusing more on financial institutions and private corporations as the city has attracted the most foreign investment and hosts the most privately owned entities. In Beijing,
the focus is on cross-border deals and projects which need central government regulatory approval. The Hong Kong offices of international law firms, in this hub of capital market and finance, usually function as bridges between mainland China and the rest of the firms’ worldwide networks.
Now, with investment increasingly extending across China, many foreign companies have established nationwide operations and require support for legal problems that arise in all regions of China. Shanghai is the next hub where law firms that are practising in inbound and outbound investment, corporate advisory and M&A, banking & finance, bonds, derivatives and outbound Chinese investments can make their home. ALB
Here it is! The complete list of finalists across the 36 categories of the biggest legal event in China – the ALB China Law Awards. See www.albawards.com for full details of the night itself on 24 April in Shanghai
deals of the yearDEBT MARKET DEAL OF THE yEAR
FINALISTS
CHina meRCHants HoldinGs senioR notes oFFeRinG ►Firms: Fried Frank; Linklaters; Maples and Calderbanks:BNPParibas;ING;MerrillLynch
andacceleratedsharere-purchase;firstconvertiblebondofferingwithconcurrentacceleratedsharerepurchase(“ASR”)program in Asia
•Pricedon9Septemberasfinancialtsunamipickedupsteamand closed day Lehman fell
•Resultsin“capitalsubstitution”notcapitaldecrease,preserves balance sheet cash, monetises high stock volatility and takes advantage of low interest rates
CHinalCo aCquisition oF staKe in Rio tinto ►Firms: Allen Arthur Robinson; Cleary Gottlieb; Clifford Chance; Fried Frank; Haiwen & Partners; Linklaters; Mallesons Stephen Jaques; Simpson Thacher & Bartlett; Sullivan & Cromwell; Wachtell Liptonbanks:CICC;CreditSuisse;JPMorgan;Macquarie; MorganStanleyaccountants: Ernst & Young
CHina Railway ConstRuCtion CoRP iPo ►Firms: Baker & McKenzie; DeHeng Law Offices; Freshfields; Jingtian & Gongchengbanks:Citic;Citi;Macquarieaccountants: Ernst & Young
CHina soutH loComotive & RollinG stoCK iPo ►Firms: Baker & McKenzie; Grandall Legal Group; Herbert Smith; Jia Yuanbanks:CICC;Macquarieaccountants: Ernst & Young
CHina HuanenG aCquisition oF tuas PoweR ►Firms: Allen & Gledhill; Haiwen & Partners; Herbert Smith; Lovells; Shook Lin & Bok; Sullivan & Cromwellbanks:BNPParibas;Calyon;CreditSuisse;DBS;Fortis; MorganStanley;Oversea-ChineseBankingCorp; SumitomoMitsuiBankingCorpaccountants:KPMG
CHinalCo aCquisition oF staKe in Rio tinto ►Firms: Allen Arthur Robinson; Cleary Gottlieb; Clifford Chance; Fried Frank; Haiwen & Partners; Linklaters; Mallesons Stephen Jaques; Simpson Thacher & Bartlett; Sullivan & Cromwell; Wachtell Liptonbanks:CICC;CreditSuisse;JPMorgan;Macquarie; MorganStanleyaccountants: Ernst & Young
•OneofhighestvaluecommercialcontractssignedinhistoryofFrench nuclear power industry
CHina HuanenG aCquisition oF tuas PoweR ►Firms: Allen & Gledhill; Haiwen & Partners; Herbert Smith; Lovells; Shook Lin & Bok; Sullivan & Cromwellbanks:BNPParibas;Calyon;CreditSuisse;DBS;Fortis; MorganStanley;Oversea-ChineseBankingCorp;SumitomoMitsuiBankingCorpaccountants:KPMG
asia PaCiFiC land aCquisition oF tHe CenteR ►in sHanGHai
Firms: Allen & Overy; Deacons; Harneys; Jun He; Maples and Calder; Orrick, Herrington & Sutcliffe; Paul Hastings; Walkers; Zhong Lunbank:JPMorganaccountants:PwC
HutchisonWhampoaGroupsubsidiarychairedby LiKashing;largestsingleassetrealestateacquisitionbyvalue in China’s history
•Shorttimeframeforstructuring,negotiation,duediligence anddocumentationininformation-scarceenvironmentofPRCreal estate market due to late entry into highly competitive bidding process
•Innovativestructuregrantsseniorandmezzaninelendersaccess to onshore security, which appears impossible under tightPRCforexcontrolregime
CountRy GaRden ConveRtible bond oFFeRinG ►Firms: Commerce & Finance; Conyers Dilll & Pearman; Jingtian & Gongcheng; Linklaters; Sidley Austinbank:MerrillLynchaccountants:PwC
•Particularlychallengingtransactiongivennumberofparties,deal dynamics and issues arising out of dual legal and regulatoryregimesinPRCandHongKong
•CreativestructureoffirstinjectingequityinterestofJinmaoGroup into an offshore company and then transferring shares of the offshore company to purchaser
Poly Real estate bond issuanCe ►Firms: Beijing Alliance; Zhong Lun
Cui Liguo, Guantao•David Liu Dali, Jun He•Guo Guiyang, King & Wood•Shuai Tianlong, Jingtian & Gongcheng•Wang Weidong, Grandall Legal Group (Beijing) •Yan Yu, Jia Yuan•
CHINA DEAL OF THE yEARFinalists to be announced on the evening
in-house awardsBANKING & FINANCIAL SERVICES
IN-HOUSE TEAM OF THE yEARFINALISTS
Bank of China•China Development Bank•China Merchants Bank•Guotai Junan Securities•Industrial and Commercial Bank of China (ICBC) •Société Générale•
INVESTMENT BANK IN-HOUSE TEAM OF THE yEAR
FINALISTS
BOC International (China) •China International Capital Corporation (CICC)•Goldman Sachs•JPMorgan•Morgan Stanley•UBS•
•BoosteddisputeresolutionexpertisebyaddingformerheadofZhong Lun’s dispute resolution practice group, Liu Honghuan, and veteran lawyer Fei Ning from Haiwen’s Shanghai office
King & Wood•Continuestobeamajornameforthemostcomplicatedand
W & H Law Firm• Insolvency&restructuringhavebeenrecognisedbyAllChina
LawyersAssociation,SupremePeople’sCourtandBeijingHighPeople’sCourt,andcasesithasadvisedonarewidelystudiedbythese organisations and top research institutes
•In2008,headedbyseniorpartnerZhangXiaowei,YiZhengyou,ZhaoJimingandZhuQingbiao,appointedasinsolvency administrator for impressive array of cases, includingbankruptcyofBeijingZhongxingTrustInvestment,XinjiangSecurities,BeijingYinjiaRealEstate
become landmark cases for instructional purposes by Supreme CourtofChina,eg,actingforEmiratesAirlinesagainstaMrXu for an air passenger liability dispute
•ActedforCargoluxanditseightco-insurersagainstXiaMenTAECO in Shanghai High Court for huge insurance indemnity ofapproxUS$14marisingfromGroundServiceContract
King & Wood•HeadedbypartnerYuanEnze,thefirm’sinsurancepractice
•Increasingfocusoncorporateendofinsurancemarkethasgainedmomentum.Increasinglyinvolvedinhigh-endmattersand adds further strength in transactional work
Wang Jing & Co•RemainsatopchoicebyprominentinternationalandPRC
insurers, reinsurers and policyholders, particularly for matters in connection with marine insurance
•BesidesadvisingoninsurancetermsandP&Iagreements,group is actively engaged in litigation and arbitration relating tomarine,property,projectandliabilityinsuranceclaims
CCH AWARD INTELLECTUAL PROPERTy LAW FIRM OF THE yEAR
King & Wood•Oneofthefewfirmswithadedicated,largeIPdepartment
and is regarded by multinational and large domestic enterprisesasaleadingfull-serviceIPlegaladvisor
•Reputationinpatentprosecutionhasbeengrowinginawiderange of industries, including biochemistry, pharmaceutical, and electrical and mechanical engineering
this firm further consolidated its leading market position as integrationprocessentereditsfinalstep.Mergerallowsitmoreopportunitiestoextendreachtonewclientsandextendshipping practice to new areas
•Continuestopositionitselfasaleadingplayerofbothdryandwet sides of the shipping business
Wang Jing & Co•Remainsoneofthetopnotchfirmsinthisnichemarket.Having
promoted a number of senior shipping associates to partnership, the firm enhanced its competitive edge in this practice area
Jun He•Taxteam,headedbyShanghaipartnerDavid(Dingfa)Liu,
continues to grow in size and strength. The team handled a broadrangeoftop-endtransactionalandadvisorytaxmattersincorporateandM&A,privateequity,bankingandfinance
Han Kun•ContinuedasadominantPRClegalcounselintheVC/PE
sectorinChinabyrepresentingnumerousVC/PEfundssuchasChinaEnvironmentFund,DCM,FidelityAsiaVenture,GEEquity,IDG,KPCB,LegendCapital,NorthernLight,PacificAlliance, among others
•DecidedtorecruittwonewpartnersfromCliffordChanceandBaker&McKenzieandonecounselfromGidetoheaditsnewShanghai and Shenzhen offices, notwithstanding worldwide financial crisis, in late 2008
Asia,suchastheCVCAsiaPacificstructuringofaRMB745minvestmentinGentingSanyenIndustrialPaper(Malaysia)andother Genting paper and packaging group companies
Maples and Calder•Clientsincludetop-tierinvestmentfirms,fundmanagersand
international corporations•RichardGrasby,atrustsspecialistatMaplesandCalder,has
•Continuestoexpandclientbasebyembracingbusinessdevelopment opportunities in new emerging markets such as India,Indonesia,Malaysia,Taiwan,ThailandandVietnam,andexistingmarketssuchasPRC,JapanandSingapore
Wang, Wu, Yang & Ma •Ithas32partnersandmorethan80legalstafffocusingon
corporate matters, banking, insurance, real estate and infrastructure
•WiderangeofclientsincludingHyundai,ICBC,BankofChina,ShenyangHualiPlaza,ChinaInvestBank(ShenyangBranch),CalbeePotatoFood,ShenyangInternationalTechnicalCooperationCompany,DoorayGroup(Korea),ShenyangKorean Commercial Association
ZHEJIANG LAW FIRM OF THE yEARFINALISTS
High Mark•Establishedstrategicallianceswithprestigiousinternational
business service providers and has had close cooperation withinternationalfirmsonanumberofhigh-profiletransactionsinZhejiang
•Hasadoptedamodernfirmmanagementstructurewhichenables it to serve clients with unyielding professional integrity and comprehensive legal services on multiple levels
(including researchers and translators), having an established network with a core team in HK and three licensed offices in Beijing,ShanghaiandGuangzhou
•AssistingaHKsubsidiaryofleadingUS-listedcompanyinlodging and hospitality supply industry to set up a foreign invested commercial enterprise in Shenzhen, Guangdong Province,toengageindistributionofhotelamenityproducts
finance, corporate finance, employment, real estate, shipping, restructuring and dispute resolution practices
•Hasgrownwithitsclientsthroughoutits145-yearhistoryandhas assisted the growth of many now global organisations, suchasHSBC,CathayPacific,SwireGroupandLi&Fung
Jackson Woo & Associates•Wellknownforitspracticeincorporatefinance,M&A,
commercial law, corporate governance and compliance issues•AssociationwithAshurstHongKongandalliancewithGuantao
enables it to offer clients a global platform with access to consistenthighqualityadviceandin-depthexperience
Woo Kwan Lee & Lo•HeadoflitigationCheungWaiHingisrecommendedformedia
and entertainment work, representing numerous performance artists, promoters, managers and movie companies
•AdvisedHongKongHotelREITinJanuary2008onitsproposed Hong Kong listing, the latest in a series of such listings on which the firm has advised
•Withninepartnersandover60lawyers,teamservesinternational clients such as banks and funds in practice areas including finance, banking, corporate, transaction, risk & asset management, dispute resolution and real estate
international commercial loans, and syndicated loans, as well as working in collaboration with overseas law firms on behalf of Chinese clients seeking overseas listing and investment
•HongKongoffice,inassociationwithHKfirmChanJ &Lai,playedimportantrolefacilitatingclients’growingcross-border business
guiding many international financial institutions and multinational corporationsthroughthecomplexChineselegalsystem
•Advisedseveralmajordealsinitsprincipalpracticefieldsofbanking, corporate and capital markets including Shanghai Electric’sInitialPublicOfferingintheA-shareMarketthroughmergerbyabsorptionwithShanghaiPower
Jun He•Winnerofthisawardlastyear,firmreinforceditspositionasa
industry leader by recruiting a number of heavyweight lawyers to its partnership, such as dispute resolution partners Liu HonghuanandFeiNing,IPveteranHuangSongandreturningfoundingpartnerJohnChu
King & Wood•ContinuestoenjoydominantpositionintheBeijingmarket,
2008sawthefirmbeingsoughtoutbymajorChineseenterprises to advise on landmark transactions, such as CentralAsia-ChinaGasPipelineprojectandChinaOilfieldServices’sacquisitionofNorway’sAwilcoOffshore
•SolePRClegalcounseltotheBeijingOrganizingCommitteefor the Olympic Games – firm’s contribution to the Olympics and its organiser was well recognised and highly praised
•MaintainedleadininternationalexpansionamongPRCfirmsbydeveloping a strategic alliance with Australian specialist corporate law firm Gilbert + Tobin and opening an office in New York
Wang Li, DeHeng Law Offices•LedbyrenownedmanagingpartnerWangLi,Dehenghas
gone from strength to strength•Pastyearsawthefirmplayinganimportantroleinsomemajor
deals,includingtheIPOChinaRailwayConstructionIPO
Wang Ling, King & Wood•King&Woodcontinuestoenjoydominantpositioninthelegal
market, and has reached new height in business development•Inadditiontoadvisingonmajorlandmarktransactions,King&
Wood’scontributiontotheBeijingOlympicsanditsorganiserwas well recognised and highly praised
•MaintainedleadininternationalexpansionamongPRCfirmsby developing strategic alliance with Australian corporate law firm Gilbert + Tobin and opening an office in New York
Wang Yadong, Run Ming•RunMinghasattractedanumberofseniorlawyersfrom
international firms and emerged as a rising star in the legal market.
Wang Zhongde, Dacheng•UnderWangZhongde,Dachenghasgonefromstrength
to strength •Openedseveralnewofficesin2008andestablishedtheCross-
Strait Legal Service Center in Shanghai, increasing its offerings to advise Taiwan clients doing business in China and domestic clients who are interested in investing into Taiwan
xiao Wei, Jun He•XiaoWeicontinuestoenjoyastrongreputationamonghispeers•AschairofJunHe’smanagementcommittee,hehasproven
itsleadershipabilitiesandbusinessacumenwithJunHeachieving another successful year
2007, AllBright’s robust growth and development proves Zhu Linhai’s effective management
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EVENtS | China Law Awards >>
ISSUE 6.3
CCH ChinaCCHisadivisionofWoltersKluwer,a leading multinational information provider,withover100yearsofexperienceinpublishinginformationonlaw,business,tax,accountingandhumanresources.OfficeslocatedinChina,HongKong,Singapore,Malaysia,Japan,Australia,NewZealand,USA,Canada,UKandEurope.
CCH China is dedicated to designing and developing professional publications about China in English and Chinese, which provide reliable and updated information for investors, corporations and professional advisers.Since2000,brancheshavebeenestablishedinBeijing,Shanghai, Guangzhou and Shenzhen; however, our company’s roots date backto1985.
Shirley Liu, Senior Area Sales Manager, CCH ChinaShirley is the senior area sales manager with CCH China.Shehasfiveyears’experienceintheprofessionalpublishing industry. She understands the legal professionals,tax&accountingprofessionalsandHRprofessional well, and has built a strong sales team to develop CCH’s business in Shanghai.
additionoftwocorporatepartnersinBeijingandHongKong,who specialise in corporate work
•HasadvisedonsomelandmarkdealsinChina,suchasthelargesttelecomrestructuringactivityinChina(ChinaUnicom/China Netcom merger) and the recent public takeover of HuiyuanJuicebyCoca-Cola
•IPpracticeenjoyedsignificantgrowthin2008andcontinuestobeattheforefrontofdevelopmentsinhigh-endIPlitigation,brand protection strategies, patent and trademark prosecution work, media and entertainment.
China Legal CareerAt China Legal Career (CLC) we differentiate ourselves from the competitionbyourlegalfocus,in-depthknowledgeaboutthelocalmarket,on-the-groundexecutioncapability,internationalnetworkintheUSandUKandourconsultants’high-levelprofessionalism.Wecoverbothprivatepracticeandin-housesectorsandwemovefrompartnerstoassociatesandfrom GCs to corporate counsels. Three years after our foundinginChina,CLChasbecomeawell-recognisedbrandnamethatisassociatedwithhigh-qualityservicein the Chinese legal recruiting community.
Frazer xia, Managing Director, China Legal CareerFrazerhasover20years’experienceinChina.He
capital markets from a leading international law firm. Proficiency in Chinese is required.
International Law Firms (Hong Kong/Shanghai/Beijing): Employment Lawyer (3-5 PQE) – International law firm seeks lawyer with experience working in Hong Kong or PRC, to join their China Employment Law Group based in either Hong Kong or China. The candidate should have at least 3 to 5 years PQE with employment law experience, particularly with a PRC focus. Chinese language skills are needed for this role.
International Law Firms (Hong Kong): Litigation/Insolvency Lawyer (2-8 PQE) – Various international law firms seek junior to senior level commercial litigation lawyers for their litigation/insolvency team to be based in Hong Kong. The successful candidate should have strong commercial litigation, insolvency or debt restructuring experience gained from working with a leading international firm. Fluency in Mandarin not required.
UK Law Firm (Singapore): Arbitration Specialist (10-18 PQE) [C1617] - Senior Arbitration lawyer required to build and lead the firm’s regional arbitration practice in Singapore.
UK Law Firm (Singapore): Corporate Partner (10-18) [C1619] - Corporate Partner with specialized practice area (outside general M&A practice) for firm with strong international presence.
For more details on these positions, as well as a full listing of all available positions, please log on to our website at www.legallabs.com. Please contact us at +852 3189 7032/ +65 6236 0166 or [email protected] for a confidential discussion.
IN-HOUSE
Leading Global Provider Of Engineering Software Solutions (Hong Kong): Regional Counsel (4-9 PQE) [C1636] – US IT Company seeks a regional business counsel to assist in the negotia-tion of their commercial contracts. The ideal candidate should have at least 5 years PQE ideally with in-house experience in IT related agreements.
Global Energy (Beijing): Senior M&A lawyer (6-9 PQE) [C852] – Strong m&a transactional experience is required, particularly in oil and gas industry to support their acquisition activities across China. Good proficiency in English & Mandarin is required.
Major US Healthcare Provider (Singapore): Legal Counsel (5-7 PQE) [C1598] – US pharmaceutical company seeks a mid-level legal counsel to be based in Singapore. The candidate should have strong general corporate/commercial experience to provide legal input to senior management of the company across the region, with particular focus on high growth markets including India and the Middle East.
PRIVATE PRACTICE
International Law Firms (Hong Kong/Shanghai/Beijing): Corporate (3-8 PQE) – Various international law firms seek mid to senior level lawyers to join their corporate and commercial practice group. The successful candidate must have good academics and strong corporate finance transactional experience in either M&A or
LexisNexisLexisNexisisaleadingglobalproviderofcontent-enabledworkflowsolutionsdesigned specifically for professionals in the legal, risk management, corporate, government, law enforcement, accountingandacademicmarkets.LexisNexisoriginallypioneeredonlineinformationwithitsLexis®andNexis®services.AmemberofReedElsevier,LexisNexisservescustomersinmorethan100countrieswith18,000employeesworldwide.
Mr Aley Chang, Managing Director, LexisNexis ChinaMrAleyChanghasover23yearsofexperienceinsales,marketing,businessdevelopment,M&Aand general management in media and information industry. He has held various senior positions in China, Hong Kong, Taipei and London driving businessexpansionfordifferentbusinessunitsinPCCWbeforejoiningLexisNexis.
MWE China Law OfficesMWEChinaLawOfficesisstrategicallyalliedwithMcDermottWill&Emery,aninternationallawfirmwith16officesintheUnitedStatesandEurope,toprovideglobalcompaniesbasedwithinandoutside of China superior client service with access to leading lawyers
Porsche Center ShanghaiThePorscheCentreShanghaicommencedoperationsonAugust192003,providingpersonal service to all customers in the East China region. The showroom is centrally located intheheartofthecity,alongtheprestigiousNanjingRoad.Inthe630m2 showroomandworkshop,Porsche’sprofessionalstaffprovideexpertiseonallPorscheproducts,includingthenewestvehiclesofcurrentmodelrange.TheshowroomalsodisplaysavarietyofPorscheDesignSelections items, such as model cars, watches and shirts. 650 units of cars were sold in 2007.
Mr Chun (Tommy) Zhao, General Manager, Porsche Center ShanghaiTommyisGeneralManagerofthePorscheCenterShanghai.Hehasover15years’experienceworkingin the China Auto industry and has had many roles as:seniormanagerinaninvestmentcompany;seniorstrategy consultant; operation manager; etc. His majorfocusisonthepartssuppliedtoOEMsandthecar sales channel.
withinChinaandaroundtheglobe.Ourlawyerspossessanin-depthknowledge and understanding of the local laws, customs and regulations ofthePeople’sRepublicofChinaandglobalbusinesspractices.WithaWestern-styleapproachtoclientservice,weexcelatprovidinglegal services and business advice to both Chinese companies and multinational companies doing business in China.
Kevin Y Qian, Founding Partner, MWE China Law Offices KevinYQianisafoundingpartnerinMWEChinaLaw Offices based in Shanghai. He has broad legalexperienceintheareasofinternationalsyndicate loans, venture capital investments, equipmentleasing,projectfinancing,jointventures,establishmentandfinancingforhigh-techcompanies,technologylicensing,M&A,internationalarbitrationandother commercial business areas.
Grant ThorntonGrant Thornton is one of Hong Kong’s leading accountancy firms providing financial advice to businesses and theirowners.Wehavealongtrackrecordofhelpingbusinessestoexpandandexplorebusinessopportunitieslocallyandinternationally.Services include assurance, business risk, corporate finance, forensic & investigation,restructuringandtaxservices.InHongKongandmainlandChina,GrantThorntonhasofficesinHongKong,Beijing,Shanghai,Chengdu,GuangzhouandShenzhen,employingover1,300people.GrantThorntonisamemberofGrantThorntonInternationalLtd,anorganisationofmemberfirmsoperatingin110countries,employingover28,000peoplein490offices.
Mr Alan Tang, Partner and Head of Specialist Advisory Services, Grant ThorntonAlanhasover25years’in-depthhands-onexperienceinvariousSpecialistAdvisoryengagements in a wide spectrum of industries and service lines, including corporate advisory, restructuring and insolvency, mergers and acquisitions,duediligence,valuation,investigation,debtrecovery,fundtracing,litigationsupport,expertwitnessandforensic accounting assignments involving operations in Hong Kong, the PRCandvarioustaxhavenjurisdictions.
Alan is the author of InsolvencyinChinaandHongKong–APractitioner’sPerspectivepublishedbySweet&MaxwellAsiain2005 (c.1,200pages).
GrantThornton’scorrespondentfirminBeijingisregisteredbytheBeijingHigherPeople’sCourtonthePanelofApprovedAdministrators,under the New Enterprise Bankruptcy Law.
hasin-depthknowledgeabouttheChineselegalrecruitingmarketandanextensivenetworkonboththeclientandcandidatesides.Frazerpreviously held many senior management positions in China and in the US.HegotaMBAfromSUNYin1987andBSfromWuhanUniversityin1982.
Gieves & HawkesAllovertheworld,“SavileRow”standsforthe very best in men’s tailoring, and it is fitting
Today,Gieves&Hawkes,asthepurveyorofquintessentialEnglishstyle, present individuals with modern classics across their wardrobe, from formal evening wear to suiting and through to casual wear.
Godwin Lam, Managing Director - China is in charge of the LiFung Trinity Group operations in Mainland China. LiFung Trinity Group is the Licensee of Gieves & Hawkes for Asia Pacific.
Husband and wife barrister duo Joanna Smith and Mark
Vanhegan may make history this March when they both take silk before the Lord Chancellor in the UK.
The pair, who met at bar school in 1989 and have two daughters, aged seven and nine, were both called by Lincoln’s Inn in 1990, and are among 104 new silks in the latest list of QC appointments.
Smith, of Wilberforce Chambers, and Vanhegan, of 11 South Square, join 4 Pump Court construction specialist Sean Brannigan, who will become a silk at just 37, and 39 Essex Street solicitor Stephen Tromans, the speediest silk appointment this year, having made the mark with just 10 years’ call.
DLA gets tough on staff sick daysDLA Piper associates who may have taken the odd ‘sickie’ after a night in
the pub or just for a break from the office are in for a rude awakening. They will soon discover that the firm takes such absences very seriously.
According to a document leaked on legal website RollOnFriday, the firm will be taking ‘attendance’ into account when it comes to selecting candidates for redundancy and – as expected – this has caused some controversy in the firm.
The file outlines that fee earners under consultation will be subject to six criteria – strength of relationship with clients, specialist skills, business development, cross-group work, attendance and disciplinary records – with each category scoring 15–20 points. Those who have taken sick leave in 2008 could have as many as five points deducted for one day.
However, reports suggest that the criteria are still in draft form, and could change during the consultation period.
Support staff will be subject to different criteria.
If we needed any further evidence that law firm redundancies have
got lawyers spooked, look no further than recent statistics from Google which have shown a near fourfold increase in the number of users searching the term “law firm layoffs”. Not surprisingly, the spike started in September with the global economic meltdown. The number of “law firm layoff” queries reached a plateau
during Christmas but resumed a steady climb in January.
The majority of these queries are coming from the US and Canada. There were 431 reported redundancies globally in November, declining to 388 in December and then rising rapidly to 783 in January. In the face of steady official denials to the contrary, there has been steady speculation that Asia will be the next region to feel the heat.
Worried lawyers hit Google to research redundancies
The month so far…
This year has seen many firms fall victim to the economic downturn and – despite efforts to restructure, revamp and cut costs – the tally continues
to grow. Firms continue to turn to redundancy consultations in a bid to lose deadweight and stay afloat.
RedundanCies as at maRCH 2009 ►Firm Total Attorneys Staff
White&Case 400 200 200
MorganLewis&Bockius 216 55 161
KL Gates 121 42 79
King & Spalding 122 37 85
Andrews Kurth 20 20
Pillsbury 155 55 100
ArentFox 28 13 15
Bingham 39 16 23
Clifford Chance 115 115
Firm Total Attorneys Staff
O’Melveny&Myers 200 90 110
Dewey&LeBoeuf 130 15 115
Shearman & Sterling 78 78
Haynes & Boone 3 2 1
Wiggin&Dana 28 14 14
Freshfields 10 6 4
DLAPiper 54 20 34
Orrick 300 100 200
SchulteRoth&Zabel 20 20
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In-houseSenior Legal Counsel (7-10 yrs pqe) Beijing Newly created role to handle the China legal duties for this listed US conglomerate seeing substantial growth in Asia. The China operation encompasses a variety of businesses, and the incumbent will be charged with streamlining these units, in addition to establishing the legal function for China and handling general corporate commercial matters. Must have proven expertise dealing with China and familiarity with US laws and corporate governance requirements; ideally, be qualified in both countries. Demonstrated legal and leadership capability is required along with fluency in written and spoken Chinese and English. Ref: 8021/CB
Assistant General Counsel Beijing Working closely with the General Counsel, this is a senior role with tremendous growth potential within one of the world’s biggest companies. PRC law degree and a foreign law degree are prerequisites, together with a foreign bar admission and international firm training. The position requires corporate commercial experience. Our client is looking for a dynamic and business savvy person who has excellent English language skills. Ref: 8079/CB
Compliance Manager Beijing Major multinational seeks a Compliance Manager to cover the Asia-Pacific region. Successful candidates need experience in a wide range of PRC compliance issues and must have the ability to provide pragmatic advice in a fast paced environment and influence change. A lawyer with regulatory and compliance experience is preferred but not essential. Applicants need definitive analytical and problem resolution abilities along with strong interpersonal skills. English and Mandarin Chinese language skills are required. Ref: 8080/CB
Legal Counsel (5-8 yrs pqe) Tianjin Seeking a lawyer with PRC qualification who has strong drafting and negotiating skills to join an international manufacturing corporation. Reporting to Lead Counsel in Asia, this regional role will be focused on China work and will involve compliance, contracts, M&A and government affairs. Candidates coming from another manufacturing company will have preference, as will those with exposure to an international work environment. Fluent written and spoken Mandarin and English are necessary. Ref: 8074/CB
Compliance Professional Beijing World famous financial institution needs a compliance professional with proven experience in any of the following areas: wealth management, asset management, funds and investment management or trading platform experience. Those having experience with a regulator such as the CSRC will have an advantage. Work with top-notch clients and deals as the firm continues to expand in China. Ref: 8078/CB
Private PracticeSolicitor (4-5 yrs pqe) Beijing Opportunity to join this international firm in their Beijing office and work on cutting-edge general corporate, China FDI and M&A transactions. Candidates must be HK qualified and have relevant experience. Work with high-calibre fee earners in a collegiate environment and gain international exposure with the opportunity to develop your career. Fluency in written and spoken Mandarin is needed. Ref: 8069/CB
Tax Consultant (3 yrs pqe) Shanghai A reputable international law firm seeks a Tax Consultant to join its Shanghai office. The qualified candidate must have at least 3 years experience in taxation gained from big 4 accounting firms or reputable international law firms. You will need to have PRC corporate taxation and international taxation experience with solid drafting skills in English. University graduate or above with a major in law, tax or accounting from one of China’s top universities and/or a qualification from an overseas law school is required. This position requires excellent English language skills. Ref: 8048/CB
PartnersChina Partner Shanghai/Beijing This dynamic US firm has seen fantastic growth in Asia. There is an urgent need for partners to be based in their Shanghai and Beijing offices with the expertise to leverage off the existing practice, as well as a proven track record of building a business. The focus will be on corporate, M&A, finance and projects. Fluency in Mandarin and English is required. Ref: 8049/CB
Disputes Partner Beijing Prestigious international firm is seeking a Partner with an established practice in litigation to be based in their Beijing office. The incumbent will need experience with cross-border litigation; arbitration exposure is a benefit. Ideal candidates will have experience representing PRC clients in international disputes. The firm is a market leader and offers one of the strongest platforms for the right candidate. Representing a major investment and demonstrating its commitment, the firm will also consider a team. Mandarin language skills are mandatory. Ref: 8071/CB
Partner Beijing Expanding its China practice, this large reputable international firm desires a Partner for the Beijing office. To be considered, you must have experience in M&A and private equity with a blue-chip deal sheet. With a worldwide reputation in high level corporate finance, the firm’s roster includes the top clients in Greater China. Candidates should ideally be dually qualified in China and the US/UK and have the ability to build on the on the firm’s strong platform. Fluent Mandarin and English are prerequisites. Ref: 8075/CB
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