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MCI (P) 029/02/2019
issn 0219 – 6875
KDN PPS 1867/10/2015(025605)
STATE OF
THE MARKET
MITIGATING RISK IN LAW FIRM NETWORKS HERE’S WHO WON CAYMAN ISLANDS
REL ATION TO THE DISCUSS STRATEGIES AT THE INDONESIA INTRODUCES
BELT AND ROAD FOR 2020 LAW AWARDS TWO NEW LAWSALB India In-House Legal Summit 2020 February 27 - Mumbai LIMITED COMPLIMENTARY PASSES* & SPONSORSHIP OPPORTUNITIES AVAILABLE Returning to Mumbai for the 3rd run, Asian Legal Business invites you to save the date for our India flagship event of the year, the ALB India In-House Legal Summit 2020 taking place on 27 February in Mumbai. This annual summit will discuss recent regulatory developments, hot pressing legal & compliance issues and showcase best practice solutions in India and the region. Companies Who Attended this Year’s India In-House Legal Summit 2019 1MG Technologies | Accenture Aditya Birla Retail | Aditya Birla Sun Life Insurance Company | AECOM | AEON Credit Service | Allcargo Logistics Limited | Allianz Global Corporate & Specialty | Altico Capital | Argus Partners | AU Small Finance Bank | Australian Foods | Axis Bank Limited | Bank of America Merrill Lynch | Bar Association of India | Society of Indian Law Firms | Becton Dickinson | Blackstone Group BNP Paribas | Cabot India Limited | CG Power and Industrial Solutions Ltd. (formerly Crompton Greaves) | Citibank | Citicorp Service India | Columbia Asia Group | Concorde Corporation | Daikin Malaysia | Daimler Financial Services | Datamatics Global Services | Decathlon Sports India | Digitron | Ecloud Group | ECU Worldwide Group | Ericsson | ES360 | Essar Power | Essel Finance | Experian India | G4S | Garware Polyester Limited. | Glenmark Pharmaceuticals Limited | Godrej Tyson Foods Limited | Godrej & Boyce Manufacturing | Goldman Sachs | Grasim Industries | Hammurabi & Solomon Partners | HDFC Life Insurance | HDFC Property Ventures Limited | Hewlett Packard Enterprise | Hindustan Construction Company | Hotel Leelaventure Ltd | HSBC | ICICI Bank | ICICI Lombard General Insurance Company | IDFC Bank | iFAST Financial India | IndiaFirst Life Insurance Company | Indospace Development Management | InterGlobe Aviation Limited | Janaadhar India | Juniper Networks | Kirloskar Oil Engines Limited | Kobre & Kim | L&T Defence | L&L Partners | L&T Financial Services | Landmark Group - India | Lhoist (Malaysia) | Linkedin | Loreal | Mahindra & Mahindra Financial Services | Mahindra & Mahindra Limited | Marriott | Mastercard | Mazagon Dock Shipbuilders Ltd | Mercedes-Benz Research and Development India | Mindtree | Mondelez India Foods | Nielsen Company | Nvidia | OLX | Olympus Corporation Asia Pacific | Oneworld | OYO Rooms | Par India Operations | PAREXEL International | Piramal Capital and Housing Finance Limited | RBL Bank | Reliance Jio Infocomm Ltd | Reliance Payment Solutions Limited | Sainath Enterprises | Schneider Electric India Ltd | Securitas India | Shardul Amarchand Mangaldas & Co. | Shreyas Shipping & Logistics Ltd | Transworld Group | Shriram City Union Finance Limited | Siemens Limited | SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA | Snapdeal | Star India | Sutherland Global Services | Symbiosis Law School | Tata Housing Development | Tata Sons | Tech Data Corporation | TFS Group of Companies | The Rasich Group | TUV Rheinland India Pvt Ltd | Uber | UCO Bank | Unlimit IOT | Valvoline Cummins | VFS Global Services Private Limited | Visa | Vistra ITCL | Volkswagen Group Sales India Private Limited | Wanbury | Weizmann Forex Limited | Welspun Corp Ltd | WNS Global Services Prvt. Ltd | Xander Finance and many more ! Benefits of Summit Sponsorship Include: • Market your organization and services to highly targeted audiences of industry professionals • Networking opportunities and interactions one-on-one with colleagues, luminaries, industry leaders, and prospective business partners to expand your markets • Opportunity to drive marketing campaigns and generate sales leads at the event • Firm profile highlighted across summit collaterals, event website and marketing campaigns for maximum exposure • Prominent signage with sponsor logo profiling your firm’s participation onsite at the summit • Chance to share the stage with the brightest minds in the legal fields and enhance your company’s reputation via speaking opportunities * Limited complimentary seats available for in-house legal counsels on a first-come-first-serve basis. Free passes are not applicable to law firms, related legal service providers and vendor companies. For Registration and Program Enquiries, please contact Willy Leonardi at (65) 6870 3102 or willy.leonardi@thomsonreuters.com For Sponsorship Enquiries, please contact Amantha Chia at (65) 6870 3917 or amantha.chia@thomsonreuters.com For more information regarding this event, please visit www.legalbusinessonline.com/ihs/indiaihls2020 Supporting Organizations Presented By
CO NT E NT S
32
PE OPLE ’S
REPUBLIC
OF FINTECH
COVER STORY FEATURES BRIEFS
16 20 and dispute the biggest names 3
State of the market: Legal Networks resolution options in of the industry grace The Briefing
Hong Kong & Roundtable: Talking the coming decade the event.
Singapore 2020 and beyond - brought to you by 4
In Hong Kong, Law firm networks Baker McKenzie Plus: Forum
a dim economic are today a - Q&A with Hanafiah
outlook coupled with critical part of 32 Ponggawa & 5
uncertainty from the the legal industry People’s Republic of Partners Deals
U.S.-China trade war globally. In this Fintech - Q&A with PT
has cast a shadow roundtable, senior China is becoming Angkasa Pura 8
over the special representatives of one of the world’s - Q&A with Explainer
administrative four leading networks key countries for Walalangi &
region, while protests talk about how they the development of Partners 9
– occasionally are going the extra financial technology, Appointments
violent - have mile to get member and lawyers are set 42
dented the city’s law firms future- to reap the benefits. New laws in the Plus:
economy. Meanwhile ready, assisting Cayman Islands - Providing Quality
in Singapore, the clients to cope with 36 Businesses now and Efficient
country continues changing global ALB Indonesia Law have to comply with Arbitration Service
to develop its business conditions, Awards 2019 two new pieces for the Belt and
reputation as an and setting strategies The winners and of legislation: Road Construction
arbitration hub and a and goals for the the photos from the The Companies
legal tech capital of coming years. sixth edition of the (Amendment) Law in 13
Asia. ALB Indonesia Law the Cayman Islands Q&A
28 Awards, held on Oct. and a new Stamp
By Elizabeth Beattie BRI Report 10 at the Grand Hyatt Duty Law, which will 14
BRI risk mitigation Jakarta, which saw take effect Jan. 1. League Tables
W W W. LEG ALBU SINES S O N L I N E.CO M A S I A N L EG A L B U S I N E S S – D EC E MB E R 2019 1Ring out the old,
ring in the new HEAD OF LEGAL MEDIA BUSINESS,
ASIA & EMERGING MARKETS
The end of a year always brings with it opportunities Amantha Chia
amantha.chia@thomsonreuters.com
to introspect, to look at the big picture and long-term
trends so to speak instead of just what is happening MANAGING EDITOR
from day to day. As we look back on 2019 for Asia’s legal Ranajit Dam
market, there doesn’t appear to have been that much ranajit.dam@thomsonreuters.com
of a change, even though it was previously predicted JOURNALIST
to be just as challenging as any in the recent past; the
Elizabeth Beattie
industry’s status quo remains intact. For all the threats elizabeth.beattie@thomsonreuters.com
of numerous competitors from within
and outside the industry, the estab- EDITORIAL ASSISTANT
lished names remain standing. No order Aparna Sai
aparna.sai@thomsonreuters.com
has been upended. However, the fact
remains that things are becoming ever COPY & WEB EDITOR
so difficult, and law firms need to take Rowena Muniz
action sooner rather than later if they rowena.muniz@thomsonreuters.com
want to stay ahead.
SENIOR DESIGNER
The obvious problem with making
John Agra
doom-and-gloom forecasts is that, espe- john.agra@thomsonreuters.com
cially in the legal industry, downturns
happen almost in slow motion. It’s TRAFFIC/CIRCULATION MANAGER
almost impossible to pinpoint how Rozidah Jambari
far the rot has set in, or what specific rozidah.jambari@thomsonreuters.com
decisions were to blame, until it’s too SALES MANAGERS
late. But the alarm bells grow louder.
Amy Sim
The Big Four accounting firms, which Senior Sales Manager
made a splash last year, are continuing (65) 6870 3348
to make their presence felt in Asia, and amy.sim@thomsonreuters.com
NewLaw firms are beginning to pose Felix Cheng
Sales Manager
a serious threat. But the threat is not (852) 2843 6943
RANAJIT DAM purely external. Law firms are fighting a losing battle felix.cheng@thomsonreuters.com
Managing Editor, to hold on to lawyers in the junior and middle ranks, Krupa Dalal
Asian Legal Business who find the profession extremely stressful. Technology Sales Manager
Thomson Reuters is shaping up to a big differentiator in the industry, but (91) 22 6189 7087
krupa.dalal@thomsonreuters.com
there is no sure-fire method to approach it – should you
embrace it early and potentially get your fingers burnt, Jeremy Lim
Sales Executive
or wait until it’s tried and tested, and thus risk missing (65) 6870 3789
the boat altogether? These decisions should not be jeremy.lim@thomsonreuters.com
taken lightly, and these questions are just scraping the Steven Zhao
surface of what firms face today. Celebrate today, but Account Manager
(86) 10 6627 1360
prepare for the future.
s.zhao@thomsonreuters.com
Yvonne Cheung
Account Director
(852) 2847 2003
yvonne.cheung@thomsonreuters.com
SENIOR EVENTS MANAGER
Julian Chiew
julian.chiew@thomsonreuters.com
Asian Legal Business is available by subscription. Please visit www.legalbusinessonline.com for details.
Asian Legal Business has an audited average circulation of 11,402 as of 30 September 2016.Copyright is reserved throughout. No part of this publication can be
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SENIOR AWARDS AND
can accept no responsibility for loss. OPERATIONS MANAGER
MCI (P) 029/02/2019 Tracy Li
issn 0219 – 6875
KDN PPS 1867/10/2015(025605)
tracy.li@thomsonreuters.com
Thomson Reuters
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2 ASIAN LEG AL BU S I N ES S – DECEM B ER 201 9 W W W. L EG A L B U S I NE S S O NLI NE .COM69
THE BRIEFING : YOUR MONTHLY NEED -TO -KNOW
INTL. LAW FIRMS
IN THE NEWS
IN HK STAYING PUT Magic Circle law firm Allen & Overy
DESPITE PROTESTS
now has 297 solicitors on the roll in
Ireland, an increase of 187 from 110
in 2018, topping The Law Society
of Ireland’s “Brexit transfer” firms
International law firms in Hong Kong
for 2019. It is followed by Linklaters
are not going anywhere – despite the
(259, up from just 53), Eversheds
protests occurring in the city – at least
PERCENT Sutherland (165), Freshfields
for the time being. In an interview
Bruckhaus Deringer (162) and
with the UK’s Law Society Gazette,
Proportion of U.S. law firms on Internet Latham & Watkins (161).
marketer Good2bSocial’s Social Law Firm
Melissa Kaye Pang, the president of
Index 2019 that have a YouTube channel. the Law Society of Hong Kong, said
This number is up from 29 percent in 2018. that the number of foreign firms in the
57.9%
city increased by two in the past six
months, to 89 as of October. She also
said that in that month, Hong Kong
QUOTE UNQUOTE had 1,671 registered foreign lawyers,
which she said was “more or less the Percentage of leaders of in-house
“EVEN THE MOST
legal teams that are most interested in
same as in April,” before protests
improvements related to cost when it
started. “These all show that the comes to their relationship with their
BASIC OF LEGAL
public order events have not impacted outside law firms, according to the 2019
the legal work,” Pang added. Chief Legal Officer Survey conducted by
Altman Weil. Improved budget forecast
SOFTWARE LAUNCHES
came in second at 40.1 percent.
U K LEG A L S EC TO R
ARE ROUTINELY
EN T ER S N E W ER A
IN THE NEWS
Since the end of November, lawyers
BADGED ‘AI’ in the United Kingdom are able to
work at unregulated firms without
special permission and to work Herbert Smith Freehills has
— AND THAT freelance with others, similar to
barristers’ chambers. This is after
launched its Digital Law Group,
made up of a permanent team
HELPS NO ONE.”
the Solicitors Regulation Authority of senior lawyers together with a
(SRA) issued its new Standards and rotating cohort from across the
Regulations, following four years of firm, that will ensure the firm’s
consultations. The SRA said that the legal professionals are given the
Dan Reed, CEO of UnitedLex, writes in
The Times that the over-hyping of artificial new rules aim to slash bureaucracy necessary “upskilling” to equip
technology means that its real value and and increase access to legal services them with the digital skills needed
potential is often missed. for the public. in the modern business world.
W W W. LEG ALBU SINES S O N L I N E.CO M A S I A N L EG A L B U S I N E S S – D EC E MB E R 2019 3BRIEFS
to make a pleasant working environment, providing
guidance and tips about childbearing, child-rearing
and returning to work based on actual experiences
of our firm’s working mother lawyers. Also, our
Associate Care Committee has recently started a
new networking event for female lawyers, regularly
hosting dinner for female lawyers from different
practices to share information that helps them to
balance work and life. Our firm has been developing
a comfortable working environment and promoting
a well-defined working style while fostering diversity
and inclusion-oriented mindset. While the working
environment for mothers has changed drastically
in the past number of years in Japan, Nishimura
& Asahi is committed to promoting concrete and
substantive measures that support women and
enhance diversity.
Foo Yuet Min
Director, Drew & Napier
FORUM At Drew & Napier, we ensure that the environment
MUM’S THE WORD
we have is one that is optimal for our lawyers to
build lasting careers in. We consciously look into
grooming promising lawyers and ensuring equal
opportunities in the route to partnership, regardless
of gender or life choices.
One of the major obstacles that working
Among the biggest hindrances to women advancing in the legal mothers and lawyers in general face is the diffi-
profession in Asia is the challenge of maintaining a balance between culty of maintaining work-life balance. Due to the
raising children and focusing on their careers. Luckily, a number of forward- demanding nature of our work, most lawyers have
thinking Asian law firms are stepping up their support by providing family- to work late hours and remain accessible almost
friendly workplace initiatives. 24/7. It can be challenging for a working mother
to practise law in such circumstances. To assist
working mothers, as well as fathers in Drew to
juggle professional and personal commitments, we
What are some of the key parental-leave, work-life have flexible arrangements to help our lawyers do
balance and other career-advancement initiatives that. These range from sabbaticals, the flexibility to
your firm has in place to assist working mothers? work from home fortnightly, and part-time working
arrangements, among others. All these are made
possible by today’s technological advancements
and our connectedness with each other, including
Mikiko Soga and Yuri Sugano our clients.
Partners, Nishimura & Asahi Drew & Napier recognises the need that all
Besides our baseline parental-leave system that individuals (whether mothers, fathers or other
allows temporary leave during working mothers’ caregivers) may, from time to time in their career,
or their partners’ childbearing and child-rearing, require flexi-work arrangements and are fully
Nishimura & Asahi also provides a Temporary supportive of it. Lawyers in Drew are encouraged
SOGA Working Arrangements System for lawyers who to propose alternative work arrangements to their
need to temporarily reduce their workload for team leaders, if they require. At the end of the day,
personal reasons, such as childbearing and child- the structure of the arrangements should be bene-
rearing, to continue to maintain opportunities for ficial for both the employee and the firm. I am a
their career advancement. Colleagues are also very working mother, and there are many others in Drew.
supportive of working mothers. Our “Lawyers Moms While juggling practice and family commitments
Manual,” produced voluntarily and informally by is never a breeze, with some creativity, supportive
some female lawyers and updated regularly over colleagues and an ability to adapt, work-life balance
SUGANO the past decade, is useful for us as working mothers is entirely achievable.
4 ASIAN LEG AL BU S I N ES S – DECEM B ER 201 9 W W W. L EG A L B U S I NE S S O NLI NE .COMBRIEFS
Yvonne Sin career development though our talent manage-
Head of human resources, Asia, ment programmes. Success on the gender diversity
Norton Rose Fulbright front is measured by the retention, development
As a global law firm, we work in very diverse markets and promotion of female talent, the recruitment
and having a diverse workforce allows us to better of female employees and partners, the success of
understand and advise our clients on their business our flexible and agile working programmes and
needs. The attraction, selection and retention of our maternity retention statistics. We constantly FOO
diverse talent is therefore critical to our success. Our measure and monitor the results achieved.
diversity and inclusion strategy is centred on three We are committed to creating and sustaining
core pillars: our clients, our people and our culture. a working environment and culture which is
Many of our partners joined the firm as trainees supportive, respectful and values difference. In
and many of our female leaders on the board and this regard, one of our priorities is “life stages”. We
management committee have risen through the understand that being a working parent is one of
ranks. These women act as role models for our rising the challenging stages in life and have introduced
talent, over half of whom are women. our Agile Working Programme in Asia which offers SIN
To improve the number of women reaching every employee and partner choice and empower-
partnership, we are focusing our efforts on active ment around where and when they work.
DEALS
$11.3 BLN $7.4 BLN $4.4 BLN $2.7 BLN
Alibaba’s secondary China Railway People’s Republic of Amgen’s investment
listing in Hong Kong Construction’s China’s euro bond in BeiGene
Deal Type: IPO investment in Thailand offering Deal Type: M&A
Firms: Fangda Partners; high-speed rail Deal Type: DCM Firms: Latham &
Freshfields Bruckhaus Deal Type: Project Firms: Allen & Overy; Watkins; Mintz;
Deringer; King & Wood Financing Linklaters Skadden, Arps, Slate,
Mallesons; Maples Firms: Herbert Smith Jurisdictions: China, Meagher & Flom
and Calder; Simpson Freehills; Linklaters France, UK Jurisdictions: China,
Thacher & Bartlett Jurisdictions: China, U.S.
Jurisdictions: China, Thailand
Hong Kong
$2.3 BLN $1.6 BLN $1.08 BLN $567 MLN
Fujifilm’s acquisition of ESR Cayman’s ADIA, NIIF, and PSP’s Lendlease Global
Xerox stake in Hong Kong IPO acquisition of stake in Commercial’s REIT IPO
Fuji Xerox Deal Type: IPO GVK Airport Holdings Deal Type: IPO
Deal Type: M&A Firms: Commerce & Deal Type: M&A Firms: Allen & Gledhill;
Firms: King & Spalding; Finance Law Offices; Firms: AZB & Partners; Dentons Rodyk &
Morrison & Foerster Freshfields Bruckhaus Cyril Amarchand Davidson; Linklaters;
Jurisdiction: Japan Deringer; Global Law Mangaldas WongPartnership
Office; Latham & Jurisdiction: India Jurisdiction: Singapore
Watkins
Jurisdiction: Hong Kong
W W W. LEG ALBU SINES S O N L I N E.CO M A S I A N L EG A L B U S I N E S S – D EC E MB E R 2019 5BRIEFS
JAPAN SET TO CHINA MERCHANTS BREAKS
FIVE-YEAR REIT LISTING
WELCOME MORE DROUGHT FOR HONG KONG
FOREIGN LAWYERS MARKET
WITH REVISED
Hong Kong is set to
welcome its first listing of a
real estate investment trust
GAIBEN LAW in five years, with the China
Merchants Commercial REIT
seeking to raise up to $400
million.
A law change that relaxes more smoothly pursued due to the reduc- The REIT, which owns five
restrictions on foreign lawyers is being tion of the two-year overseas experience commercial and office prop-
welcomed in Japan, as the market grad- rule to one year,” she says. However, she erties in Shenzhen, wants to
ually embraces international talent. The says that the committee is advocating for expand in the Greater Bay
revised Gaiben law, which expands activ- the complete abolition of the work expe- Area which has a popula-
ities allowed and decreases the period rience rule for foreign lawyers in Japan. tion of about 70 million and
of overseas work experience required Aaron Patience, who heads the includes Hong Kong, Macau
for foreign lawyers, is expected to be Simmons & Simmons Tokyo office, and Guangdong province.
confirmed during this Diet session. believes the law change strikes a good It plans to issue 750 million
The bill was originally advised balance, noting that the general market units priced between HK$3.42
by Japan’s Ministry of Justice and the reaction seems to be that it’s “a step in and HK$4 each, according to
Japan Federation of Bar Associations the right direction.” a term sheet seen by Reuters.
back in 2016, and although formally The loosening of foreign lawyer That would raise $330 million
adopted and expected during Japan’s restrictions also indicates a demand to $380 million.
2018 autumn Diet session, it failed to for foreign talent. “I think there will A greenshoe option of 5%
eventuate. continue to be a need for the skill- of units outstanding could lift
The arrival of the law coincides sets of international lawyers in partic- the deal value to $400 million.
with a government-led push to boost ular sectors; like infrastructure projects At the top end of the range and
Japan’s international arbitration capa- and project finance,” says Patience. including the greenshoe, the
bilities. Last year in Osaka, the Japan “Japanese clients tend to appreciate REIT would have a market
International Dispute Resolution Center service providers that can bridge cultural value of around $575 million.
(JIDRC) was launched, while a second gaps, such as by delivering messages in a Singapore has long been
JIDRC centre is expected in Tokyo next particular way, whether it be in Japanese seen as the Asian hub for
year. or by using English in a way that reso- REITs, and Hong Kong has just
Lawyer Rika Beppu, who was nates with them.” 11 listed. The last Hong Kong
involved in the amendments and chairs While Japan may be opening up REIT listing was December
the European Business Council Legal to foreign lawyers, the domestic legal 2014, when Dalian Wanda
Services Committee, says that the market is also looking outward. “There’s raised $4 billion.
changes are “wholeheartedly welcome.” also more of an interest in Japanese Sumeet Singh, head of
“Once the changes are implemented lawyers doing international work, and research and IPOs at research
into law, international lawyers who have there’s a push from the Japanese busi- firm Aequitas, also said Hong
started their careers in Japan and are ness community to get involved in cross Kong investors tended to
currently in Japan pursuing their legal border transactions between Japan and prefer bigger fry. “Hong Kong
careers will no longer need to disrupt the rest of the world,” Patience says. “I has always been a growth
their careers by going overseas for two think some of the roles that were poten- market, with investors looking
years to satisfy the current requirement,” tially in the past filled by Commonwealth for the next Tencent, Meituan
Beppu says, noting that overseas work or U.S. lawyers are now increasingly or now even Alibaba. A REIT is
experience will be reduced to one year. being done by Japanese lawyers who are just not as exciting in terms of
“This will be beneficial to Japan- interested in that space. So that could prospects,” he said in research
based clients as well as law firms, where influence the opportunities for interna- published on the Smartkarma
an international lawyer’s career can be tional lawyers.” platform.
6 ASIAN LEG AL BU S I N ES S – DECEM B ER 201 9 W W W. L EG A L B U S I NE S S O NLI NE .COMBRIEFS
EXPLAINER requests and to establish a Code
of Ethics of Commissioner and
INDONESIA’S CORRUPTION WATCHDOG MAY
an officer to evaluate the perfor-
mance of KPK Commissioner and
Officer, Djamaris says.
HAVE BEEN RENDERED TOOTHLESS
There is also a new regulation
around the watchdog’s ability to
wiretap communications during
investigations. “Such regulation
requires KPK to obtain written
Is Indonesia’s star corruption HOW D OES THE NEW approval from the Supervisory
watchdog too good at its job? A raft of KPK REGIME ME ASURE Board within 24 hours. The wire-
changes that weaken state institution UP ? tapping, subject to approval, can
Komisi Pemberantasan Korupsi (KPK) There are several differences be conducted up for six months
has cast doubt over political prom- between the KPK watchdog in and extendable once with the
ises that the Southeast Asian nation is its original form and the revised same amount of time,” Djamaris
serious about cracking down on corrup- version. Now included as part explains.
tion. Tasked with preventing and moni- of the executive branch, the
toring corruption and conducting inves- status of the watchdog has been
tigations and prosecutions, according changed, leaving its abilities to WHAT IMPAC T IS THE
to the Centre for Public Impact, the manage its human resources WE AKENING OF KPK
KPK achieved 100 percent convic- restricted as its employees are LIKELY TO HAVE ON THE
tion rate and boosted its standing on now part of the Civil Servant MARKET ?
Transparency International’s 2015 Corps. President Joko “Jokowi” Widodo’s
Corruption Perception Index — up from The watchdog’s investigation second presidential term comes
122nd in 2003 to 88th. But in September, and prosecution powers have also with high expectations from his
legislators amended the KPK’s over- been overhauled. While it still has constituents. “One of the main
sight, curbing its enforcement abili- the authority to carry out investi- visions of President Joko Widodo’s
ties drastically, sparking student-led gations and prosecution in cases second presidential term is to
demonstrations. involving loss of 1 billion rupiah push and attract more foreign
($71,000) it no longer has the investment into our economy,
authority to investigate and pros- continuing what he already
ecute cases that attract public achieved during his first term.
outcry. But the changes go even While it has positive benefits to
deeper. Indonesia’s economy, attracting
Defrizal Djamaris, managing more investment should be
partner of Kudri & Djamaris, says accompanied by a strong legal
that Article 12A of the legislation protection,” Djamaris says.
eradicates KPK authority further While courting investment
in a number of areas, including has been a top priority for Jokowi,
its ability to request information economists warn that corrup-
from banks or other financial tion may flourish under these
institutions pertaining to those new conditions — which could
accused. It may not instruct banks cool international investment.
or other financial institutions But Djamaris says the optics of
to freeze accounts or instruct these changes may be in line with
employers to suspend suspects. Jokowi’s goals.
It also loses its ability to request “The new amendment of KPK
related agencies make arrests, law might be seen as an effort to
search, or confiscate evidence furnish legal protection to market
overseas. players to attract more inves-
Additionally, the new KPK tors. This amendment is likely
law has brought about the intro- enacted to continue the govern-
duction of a Supervisory Board, ment’s commitment to polishing
which serves to manage and the investment climate, as over
approve search and confiscation the last five years, the Corruption
8 ASIAN LEG AL BU S I N ES S – DECEM B ER 201 9 W W W. L EG A L B U S I NE S S O NLI NE .COMBRIEFS
Perception Index published by APPOINTMENTS
Transparency International shows
that Indonesia has managed to
show improvement.”
“It also shows that while
such improvement is produced
by various factors, the score will
definitely be higher if corruption
in Indonesia can be eradicated,”
Djamaris notes.
WHAT ELSE SHOULD STEPHANIE CHAN WING CHEUNG CHUA TJU LIANG
BUSINESSES AND L E AV I N G L E AV I N G L E AV I N G
Ashurst Locke Lord Chris Chua & Associates
INVESTORS BE AWARE
JOINING JOINING JOINING
OF ? Reed Smith HFW Drew & Napier
While the amendments to the P R AC T I C E P R AC T I C E P R AC T I C E
law may be a move to court Litigation Capital Markets, M&A Oil & Gas
foreign investment, members L O C AT I O N L O C AT I O N L O C AT I O N
Hong Kong Hong Kong Singapore
of Indonesia’s Institute for
Development of Economics and
Finance expressed their concerns
about a lack of guarantee by the
government to extinguish corrup-
tion, local media reported.
And, from a legal perspec-
tive, further provisions are recom-
mended. “While we appre-
ciate the government effort to
improve and enhance KPK ability
to combat corruption, we think DOUG CLARK LAURENCE DAVIDSON NICK DAVIES
that several provisions of the new L E AV I N G L E AV I N G L E AV I N G
KPK law need to be considered N/A HNA Group Appleby
especially after the introduction JOINING
Rouse
JOINING
Hogan Lovells
JOINING
Walkers
of a new body to supervise KPK
P R AC T I C E P R AC T I C E P R AC T I C E
activities,” Djamaris says. “As we Dispute Resolution Corporate DCM, Structured Finance
all know, KPK is an independent L O C AT I O N S L O C AT I O N L O C AT I O N
agency that is immune to any Hong Kong/Shenzhen Hong Kong Hong Kong
interference from third parties.
This special nature is a key factor
that makes KPK able to get its
job done independently, which of
course contributes to Indonesia’s
efforts to eradicate corruption
and gives legal protection and
legal certainty, especially to busi-
ness and investment.”
In the meantime, carefully
monitoring the situation is crit- JOSEPH JIMMY MARK LEHMKUHLER ZUBIN MEHTA
ical. “We think that the introduc- L E AV I N G L E AV I N G L E AV I N G
tion of such supervisory body is Cyril Amarchand Mangaldas Orrick, Herrington & Sutcliffe Veritas Legal
something that needs to be JOINING JOINING JOINING
Trilegal Fangda Partners Shardul Amarchand Mangaldas
carefully monitored by the wider
P R AC T I C E P R AC T I C E P R AC T I C E
public. We are concerned that it Banking & Finance M&A, PE Banking & Finance
has potential to reduce KPK inde- L O C AT I O N L O C AT I O N L O C AT I O N
pendence,” Djamaris says. Mumbai Hong Kong Mumbai
W W W. LEG ALBU SINES S O N L I N E.CO M A S I A N L EG A L B U S I N E S S – D EC E MB E R 2019 9BROU GH T TO YOU BY CIETAC
Providing Quality and Efficient Arbitration Service for
the Belt and Road Construction
The China International Economic On November 7, 2019, CIETAC held
and Trade Arbitration Commission the Belt & Road Arbitration Institutions
(“CIETAC”) is the most representa- Roundtable Forum in Beijing jointly
tive international arbitration institu- with eight leading arbitration institu-
tion in China with the longest history. tions around the world, including the
CIETAC has extensive experience in the ICC International Court of Arbitration.
settlement of international commer- Over 40 arbitration institutions from
cial disputes and remains committed China and abroad signed the Beijing
to promoting the development of inter- Joint Declaration of the “Belt and Road”
national commercial arbitration. Since Arbitration Institutions to push forward the
the implementation of the Belt and Road Wang Chengjie in-depth collaboration in settling the inter-
Initiative in 2013, CIETAC has handled Vice Chairman and Secretary General national trade and investment disputes
many Belt and Road related cases and of CIETAC related to the Belt and Road projects.
adopted measures to play an active role
in furthering the Initiative. and Road. It also set up the CIETAC North (4) Providing theoretical and academic
America Arbitration Center in Vancouver, support to serve the Belt and Road
(1) Providing quality arbitration service Canada on July 2, 2018, and the CIETAC construction
for the resolution of the Belt and Road- European Arbitration Centre in Vienna, Since the implementation of the Belt and
related disputes Austria on September 28, 2018, to Road Initiative, CIETAC has organized
CIETAC has stepped up its efforts to provide quality and convenient arbi- and carried out a number of research
enhance the quality of arbitration tration service to enterprises that have projects on the international arbi-
service, and improved the efficiency in developed their businesses under the tration systems of the Belt and Road
managing cases. CIETAC has selected Belt and Road Initiative in North America countries and has finished research on
and engaged arbitrators in considera- and Europe. the commercial arbitration systems in
tion of the advantages of the Belt and 25 countries such as India, Indonesia,
Road countries. Having accomplished (3) Strengthening exchanges and coop- Vietnam, Turkey and Pakistan. Based
the renewal of its arbitrators in 2017, eration with international arbitration on this research, CIETAC has provided
CIETAC now has engaged more arbitra- institutions in Belt and Road countries enterprises with specific information
tors from the Belt and Road countries, Since 2013, CIETAC has sent a number concerning the arbitration systems
with the number of arbitrators increased of delegations to establish and enhance and institutions of the relevant coun-
from 51 to 78, and the nationalities of exchanges and cooperation with pres- tries, to help them avoid legal risks and
arbitrators from 17 to 32, hence further tigious arbitration institutions in major conduct comprehensive assessments of
enhancing the credibility and influence countries along the Belt and Road. So their economic and trade activities in the
of CIETAC’s arbitral awards. far, CIETAC has set up cooperation mech- Belt and Road countries.
From January 2013 to June 2019, anisms with major arbitration institu- In 2019, CIETAC compiled “Selection
CIETAC has accepted 557 Belt and Road tions in 22 countries such as Turkey, of Arbitration Cases Involving the Belt
related cases, involving a total dispute Singapore and Poland. CIETAC dele- and Road Countries” including 18 inter-
amount of RMB24.357 billion and gations also arranged meetings with national commercial arbitration cases
involving 43 Belt and Road countries. Chinese-funded enterprises located in related to the Belt and Road countries
the countries they visited, sharing expe- or regions handled by CIETAC since 2013,
(2) Actively expanding CIETAC’s riences on how to prevent legal risks in involving various types of disputes, such
presence their local operations. CIETAC is always as international construction projects,
CIETAC has been actively expanding its committed to further deepening the international sales of goods and equity
domestic and international presence by mutual understanding, exchanges and transfer, with case analysis conducted
setting up branches at home and abroad. cooperation with the arbitration insti- by senior arbitrators. In addition,
In September 2017, it set up the CIETAC tutions in countries along the Belt and CIETAC published the Annual Report
Silk Road Arbitration Center in Xi’an to Road and enhancing the international on International Commercial Arbitration
provide commercial arbitration service recognition and influence of Chinese in China. In Chapter Two of the Annual
for countries and regions along the Belt arbitration institutions. Report, “Observation on China’s
10 ASIAN LEG AL BU S I N ES S – DECEM B ER 201 9 W W W. L EG A L B U S I NE S S O NLI NE .COMRoundtable for Leaders of Belt and Road Arbitration Institutions
(6) Continuously improving the diver-
sified dispute resolution mechanism
CIETAC released its International
Investment Arbitration Rules in
September 2017. The Rules are the first
of the kind in China, which fills the gaps
in China’s international investment arbi-
tration rules and provides an important
platform and way for Chinese compa-
nies to resolve disputes arising from
their investments in foreign countries.
In order to speed up the implementa-
tion of the Rules, CIETAC has released
its Panel of International Investment
Arbitrators in September 2018, with a
Beijing Joint Declaration of the Belt and Road Arbitration Institutions total of 79 arbitrators. Among them, 15
arbitrators are from 12 major countries
International Commercial Arbitration CEITAC Cup International Commercial along the Belt and Road. By doing so,
Practice Involving the ‘Belt and Road’ Arbitration Moot in recent years. CIETAC CIETAC can better meet the needs of
Countries”, the characteristics of the has also held forums on Belt and Road enterprises to participate in the Belt and
Belt and Road related CIETAC cases are trade and investment risk prevention and Road construction and provide conven-
summarized for the first time based on response and other related activities in ience to the parties in choosing their
big data and analysis of typical cases. many cities in China. In the international arbitrators.
These researches provide an overview dimension, CIETAC has held activities CIETAC also established its media-
of arbitration cases handled by Chinese in the United Kingdom, France, Spain, tion center in May 2018 and the Center
arbitration institutions in countries and Singapore, Indonesia, Malaysia, Poland, has released its List of Mediators, with
regions along the Belt and Road, and South Africa, Brazil and other countries a view to satisfying the needs of parties
pinpoint legal issues to which Chinese along the Belt and Road, such as forums of the Belt and Road countries who are
enterprises should pay attention when for Chinese-funded enterprises, and from different legal and cultural back-
“going global”. The Annual Report also seminars on legal risk prevention and grounds, and also providing them with
shares experiences on how to deal with dispute resolution. The activities aim to quality and efficient diversified dispute
foreign-related commercial disputes and help enterprises fully understand the fair, resolution service.
gives suggestions on risk prevention. reasonable and efficient approaches to
resolving Belt and Road related inter- CIETAC
(5) Carrying out extensive training and national commercial disputes, provide 6/F, CCOIC Building, 2 Huapichang
research activities on corporate legal them with efficient arbitration and legal Hutong, Xicheng District, Beijing
risk prevention and dispute resolution support in their business activities, and 100035
Centering on the subject of Belt and Road encourage them to participate in the T: 010 8221 7788, 6464 6688
arbitration service, CIETAC has hosted construction of the diversified dispute F: 010 8221 7766, 6464 3500
events such as the China Arbitration resolution mechanism for the Belt and E: info@cietac.org
Week, China Arbitration Summit, and Road related disputes. W: www.cietac.org
W W W. LEG ALBU SINES S O N L I N E.CO M A S I A N L EG A L B U S I N E S S – D EC E MB E R 2019 11BRIEFS
WHEN HIRING IN 2019, LAW FIRMS IN HONG KONG HAVE
PRIORITISED TECHNOLOGY AND INNOVATION
Steady demand for disputes teams to help develop and implement to relocate lawyers from other jurisdic-
specialists, law firms looking abroad various legal tech tools,” says Camilla tions such as Singapore,” she says.
for candidates, and the beefing up of Worthington, director at Lewis Sanders. At the same time, as the market
in-house talent acquisition teams are “Many of these firms are now looking to evolves, law firms are changing the way
some of the key hiring trends that legal expand this offering in Asia and we are they are hiring. “In the past, firms tended
recruiters in Hong Kong have seen in seeing a growing number of innovative to rely on recruiters for lateral recruits,
2019. They say that while there are plenty new business support roles ranging from but in recent years, a number of firms
of new roles to fill across the board, firms investment in AI technologies to concen- have invested to hire in-house recruiters
are prioritising certain attributes among trating on IT-related projects and change to build their direct sourcing capabilities
their new hires. Chief among these is the management initiatives.” and encourage internal referrals.
ability to be innovative. Worthington says the prerequisite Firms have also been more inno-
Katherine Fan, managing director for candidates to be fluent Mandarin vative, setting up initiatives such as
at Hughes-Castell in Hong Kong, says speakers continues, although there virtual internships to optimise outreach
that with the legal market constantly have been a few exceptions. “We have for graduates and being more active on
evolving, firms are looking for lawyers seen lawyers able to secure excellent social media,” says Fan.
who are ready and willing to adapt to new positions without language capabil- But much like the demands of
face new challenges “with an open mind ities. These tend to be in niche areas such employers are changing, so too are the
and commercial acumen to turn the as competition, employment or funds. requirements of potential employees.
challenge into an opportunity.” In Hong Kong’s sophisticated market, Candidates are expecting more,
“There is a greater emphasis on the ability for being a technically strong searching for “comprehensive and
innovation, and several clients are intro- lawyer is a given; having the acumen tangible offerings: career path, partner
ducing innovation initiatives to inspire for commercial, client and BD aware- contact, client exposure, and flexible
their lawyers to provide creative solu- ness will always make the difference,” working arrangements,” Worthington
tions. Drive and resilience, commerci- she says. of Lewis Sanders says, noting that firms
ality, high EQ, tech and digital skills, Among the other trends noticed by that can offer this can attract higher-
ability to be accountable and self-aware Hughes-Castell is steady hiring for roles calibre candidates.
continue to be key skills that clients in litigation and international arbitra- To step up their game, “firms are
value,” Fan adds. tion practices. now more mindful of the job expecta-
With technology becoming increas- Fan notes that given the broad range tions of employees and understand that
ingly vital to how a law firm functions, it’s of skilled positions to fill, clients have company culture is a key factor to engage
not just lawyers that firms are looking for. also been looking abroad. “Clients often employees, so place more emphasis on
“Many of the Magic and Silver Circle feel there is a shortage of candidates that marketing their diversity, employee well-
firms in London have built substantial meet their requirements in Hong Kong ness programs and agile work options to
in-house legal technology/innovation and we continue to see their willingness attract talent,” she adds.
12 ASIAN LEG AL BU S I N ES S – DECEM B ER 201 9 W W W. L EG A L B U S I NE S S O NLI NE .COMBRIEFS
Q&A have more female partners than any for offices in the southern Chinese tech-
other law firm and for the last three nology hub of Shenzhen.
‘LISTEN
years our promotions to partner have
been 40 percent women. However, we ALB: Hong Kong has recently gone
still have a number of our locations that through a period of upheaval. Going
have no or very few women partners at into the New Year, what are some of
AND ENGAGE’
senior levels of management. So, we the areas of opportunity you see in the
need to do everything to make sure our market?
firm is a fair and inclusive place to work, CHENG: Hong Kong is certainly under-
acknowledging that in some cases we going a challenging period, but equally
may need to do even more to address Hong Kong has proven time and time
Recently elected as Baker underlying structural or again that it can over-
McKenzie’s first Asian global other impediments and come major challenges
chair, Milton Cheng has that we create the best and remain a key finan-
ambitious plans to grow environment for all our cial centre. Going into
people. Which is why we 2020, China’s Belt
the firm’s Mainland China
announced the Gender & Road and Greater
presence, while maintaining Aspirational Targets in Bay Area initiative will
a steady commitment to the July. I am proud we were continue to be a major
Hong Kong market. In an the first global law firm source of opportunities
interview with ALB, Cheng to do so. for businesses in Hong
also unpacks his plan to From last July all Kong across a wide
candidate pools for spectrum of sectors
boost gender diversity and
external recruitment including for law firms.
streamline the firm’s global for partners or senior “I think it is a big As an international
network. business professionals tribute to the region financial centre at the
should meet the new and recognition of doorstep of Mainland
ALB: You’ve received a lot of recogni- targets. From July 2020, China, I am confident
tion in the media for being the firm’s for offices which do not the growth and the that Hong Kong will
first Asia-based chair, do you think your yet have at least 25 growing importance continue to be a vital
election signals an effort to focus on percent women part- of Asia, but also an conduit to cross-border
Asia going forward? ners, at least one out of trade and investments
CHENG: Baker McKenzie has always four partner promotions example of how, in between China and the
been a truly global firm with no one should be a woman. Baker McKenzie, rest of the world.
region dominating our management or Offices with no female everyone has the
our culture. I like to see myself as the partners must advance ALB: What are your
latest in a series of firsts that we have a woman partner by July opportunity to be plans for the imme-
led the legal sector on: First female chair 1, 2023. successful and to diate future?
with Christine Lagarde in 1999, first Latin lead, regardless of CHENG: The complexity
American chair in 2010 with Eduardo ALB: What are your of any organisation like
Leite and now with myself as our first plans for China heading background.” this is a challenge. I
Asian chair. I think it is a big tribute to into 2020? have found the enthu-
M I LTO N C HE N G
the region and recognition of the growth CHENG: 2020 will be siasm and helpfulness
and the growing importance of Asia, a year of some signif- of so many people has
but also an example of how, in Baker icance to our firm in China and glob- helped me as I take on the role, so I feel
McKenzie, everyone has the opportunity ally, as it marks the fifth anniversary well prepared. My top three priorities
to be successful and to lead, regardless of the establishment of our joint oper- for the next few months coming into
of background. ation office with FenXun Partners in this new role are to listen and engage,
the Shanghai FTZ. Over the years, the work with the global board to agree and
ALB: Baker McKenzie recently set team has grown six-fold in size, serving communicate short, medium and long
40:40:20 gender targets for 2025. Can an expanding suite of domestic and term goals and chart a clear implemen-
you tell us about some of the initiatives multinational clients. We have recently tation plan for the next 12 months and
you have in place to achieve this? confirmed that we are exploring plans to beyond, and articulate and attain buy-in
CHENG: I am a big supporter of these take this co-operation a stage further by of the plan as I visit offices around the
targets and we are already making great expanding our presence in the Greater world and talk to our partners and our
progress toward this critical goal. We Bay Area, including potentially applying people.
W W W. LEG ALBU SINES S O N L I N E.CO M A S I A N L EG A L B U S I N E S S – D EC E MB E R 2019 13BRIEFS
N O RT H A S I A A N D S O U T H E A S T A S I A / S O U T H A S I A L E AG U E TA B L E S
North Asia Announced M&A Legal Rankings North Asia Announced M&A Financial Rankings
No. 1 - Nishimura & Asahi No. 1 - Morgan Stanley
57,796.6 Deals: 129 / Market Share: 8.4
Value ($MLN) 79,693.9 Deals: 83 / Market Share: 11.5
Value ($MLN)
Value Market Value Market
Rank Legal Advisor Deals Rank Legal Advisor Deals
($MLN) Share ($MLN) Share
2 Kim & Chang 43,251.7 115 6.3 2 Nomura 67,935.3 110 9.8
3 White & Case LLP 37,272.0 30 5.4 3 Mizuho Financial Group 49,860.2 127 7.2
4 Mori Hamada & Matsumoto 37,251.1 86 5.4 4 CITIC 48,987.3 78 7.1
5 Baker Mckenzie 34,300.0 44 5.0 5 Goldman Sachs & Co 48,731.0 60 7.0
6 Nagashima Ohno & Tsunematsu 33,213.3 80 4.8 6 JP Morgan 48,223.5 36 7.0
7 King & Wood Mallesons 32,357.7 54 4.7 7 Citi 37,784.3 35 5.5
8 Anderson Mori & Tomotsune 31,342.9 61 4.5 8 Deutsche Bank 28,342.2 20 4.1
9 Cleary Gottlieb Steen & Hamilton 28,816.1 13 4.2 9 Lazard 25,114.6 21 3.6
10 Latham & Watkins 27,889.6 30 4.0 10 Sumitomo Mitsui Finl Grp Inc 22,822.8 167 3.3
(*tie) Based on Rank Value including Net Debt of announced M&A deals (excluding withdrawn M&A) (*tie) Based on Rank Value including Net Debt of announced M&A deals (excluding withdrawn M&A)
Southeast Asia / South Asia Announced M&A Legal Rankings Southeast Asia / South Asia Announced M&A Financial Rankings
No. 1 - AZB & Partners No. 1 - Morgan Stanley
23,224.8 Deals: 127 / Market Share: 9.9
Value ($MLN) 44,265.8 Deals: 32 / Market Share: 18.8
Value ($MLN)
Value Market Value Market
Rank Legal Advisor Deals Rank Legal Advisor Deals
($MLN) Share ($MLN) Share
2 Kirkland & Ellis 21,752.0 14 9.2 2 JP Morgan 34,277.2 11 14.6
3 Simpson Thacher & Bartlett 20,218.8 10 8.6 3 Bank of America Merrill Lynch 33,065.2 21 14.0
4 Davis Polk & Wardwell 20,100.9 8 8.5 4 Citi 28,845.5 29 12.2
5 Allen & Gledhill 18,261.9 35 7.8 5 Goldman Sachs & Co 26,485.2 17 11.2
6 Cyril Amarchand Mangaldas 17,396.9 65 7.4 6 Barclays 21,131.1 10 9.0
7 WongPartnership LLP 15,478.7 29 6.6 7* Deutsche Bank 18,700.0 1 7.9
8 Shardul Amarchand Mangaldas & Co 11,353.0 62 4.8 7* Eastdil Secured LLC 18,700.0 1 7.9
9 Allen & Overy 10,201.8 28 4.3 9 Credit Suisse 14,383.6 19 6.1
10 Minter Ellison 8,699.4 5 3.7 10 Rothschild & Co 10,705.8 20 4.5
(*tie) Based on Rank Value including Net Debt of announced M&A deals (excluding withdrawn M&A) (*tie) Based on Rank Value including Net Debt of announced M&A deals (excluding withdrawn M&A)
Any North Asia Involvement Announced M&A Activity - Quarterly Trend
Series1 Series2
Rank Value US$ Billion
440 5,000
374.4 355.8
No. of Transactions
325.4 4,000
340 282.2 283.9
253.4 268.3 257.8 254.9
243.8 245.9 230.0 217.1248.2 3,000
201.3 219.0
240 193.9 189.1194.7
169.4 174.1 159.6
142.8131.9 149.7143.1 148.9 2,000
140 95.6114.7 115.3123.1
93.5 1,000
40 0
1Q 12 3Q 12 1Q 13 3Q 13 1Q 14 3Q 14 1Q 15 3Q 15 1Q 16 3Q 16 1Q 17 3Q 17 1Q 18 3Q 18 1Q 19 3Q 19
League tables, quarterly trend, and deal list are based on the nation of either the target, acquiror, target ultimate parent, or acquiror ultimate parent at the time of the transaction. Announced M&A transactions excludes withdrawn deals. Deals with undisclosed dollar values are rank eligible but with no
corresponding Rank Value. Non-US dollar denominated transactions are converted to the US dollar equivalent at the time of announcement of terms. North Asia includes China, Hong Kong, Japan, South Korea, Taiwan. Data accurate as of 6 November 2019.
14 ASIAN LEG AL BU S I N ES S – DECEM B ER 201 9 W W W. L EG A L B U S I NE S S O NLI NE .COMAsian Legal Business is the leading
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be able to provide you with the best service we can, whilst also protecting your privacy.COVER STORY
In Hong Kong, a dim
economic outlook coupled
S TATE O F T H E MAR KET:
with uncertainty from the
U.S.-China trade war has
HONG KONG
cast a shadow over the
special administrative
region, while protests –
occasionally violent – have
dented the city’s economy.
As Hong Kong’s Summer of Protest
continues into the winter, lawyers in the
city have a range of issues to chew over.
But it’s not all gloomy. In stark contrast
BY E LIZ AB E T H B E AT T IE to last year, where firms fixated on fierce
market competition and oversaturation,
this year lawyers see amble new oppor-
tunities, if they can navigate through the
challenges to seize them.
“Hong Kong has always bounced back
and bounced back relatively quickly and
aggressively from economic downturns.
Whether it’s the Asian Economic Crisis
or SARS, there has always been resil-
ience in Hong Kong and one would hope
and expect that resilience to continue,”
says John M Marsden, a partner at Mayer
Brown. “The support of the mainland has
always been instrumental to that resil-
ience, in particular, its willingness to
encourage capital inflows and encourage
domestic tourism back to Hong Kong.”
But Marsden, like many, is wary of
the city’s immediate economic outlook,
noting an increase in reorganisation or
insolvency work is likely on the cards.
“Coming out of many years of a low-
interest environment, certain companies
are probably continuing, not because
their underlying financials are robust,
but because of market conditions, in
particular, a low-interest environment.
As we start to see some pressure on
interest rates, coupled with decreased
liquidity in the market, I think we’ll see
the more highly leveraged players in
Hong Kong face distress and we’ll see
an uptick in reorganisation or insolvency-
related work,” says Marsden, who adds
that he sees more companies “entering
in some form of restructuring or formal
insolvency procedure.”
16 ASIAN LEG AL BU S I N ES S – DECEM B ER 201 9 W W W. L EG A L B U S I NE S S O NLI NE .COMCOVER STORY
PRC F I R M S G ROWIN G take time to mature; to find what works, on business activity, companies still need
Despite the slowing down of the Hong what the competitive advantages are to work on their financings and disputes.
Kong economy, PRC firms continue to and what will succeed. Taking a satel- Regardless, firms with highly diversi-
grow in the city, frequently snapping up lite view, the GBA offers an amazing fied offerings will continue to thrive as
ambitious lawyers from storied UK and concentration of access to domestic they continue to serve clients across the
U.S. law firms. And they are becoming and international capital, tech develop- entire spectrum of their business inter-
a serious threat in the city. ment and manufacturing. The infrastruc- ests,” he says.
“PRC law firms have been expanding ture connecting various hubs is coming Flinn says new measures to
their reach by establishing offices in Hong together. The connectivity between these “promote connectivity of the legal juris-
Kong, where they focus on listings and complementary sectors will provide law dictions between mainland China and
capital markets work. They enhance and firms with plenty of opportunities serving Hong Kong” are expected. “In 2019, we
diversify their offering through recruiting different needs in the area. Law trails saw a number of arrangements being
legal talent from western law firms and business, so we will have to wait to see put in place. For example, the govern-
continue to hone their domestic pres- which practices are needed where,” he ment of the Hong Kong SAR and the
ence in Shenzhen and other GBA cities says. Supreme People’s Court of the People’s
to capture work from China,” says Helena Meanwhile, Huang has noticed busi- Republic of China signed an agreement
Huang, co-chief executive at King & nesses, investors, and financial institu- that broadens the scope of judgments
Wood Mallesons Hong Kong. tions are keen to make use of the initi- which may be enforced between the
Clifford Ng, a Hong Kong-based ative. “Law firms with on-the-ground mainland and Hong Kong,” he says.
partner at PRC firm Zhong Lun, views presence, equipped with both PRC and “International arbitration will also
the growing number of PRC firms, in international legal capabilities will be a key focus area. The most notice-
part, as a natural reflection of China’s benefit from this trend. We can expect able trend has been the ever-growing
growing economy. “The U.S. has been further collaboration of the two distinct use of Hong Kong by mainland parties
the largest economy in the world for legal jurisdictions of mainland China and as a centre for both arbitration and liti-
some years now, and you can see Hong Kong,” she says. gation. It is also one of the objectives
how many U.S. law firms are in Hong “This GBA development is a from the GBA outline to support cooper-
Kong. China is now the second-largest gamechanger of our business strategy”, ation among arbitration and mediation
economy in the world, but how many Huang says, noting that her firm estab- organisations and provide such capabili-
mainland Chinese law firms are in Hong lished its KWM International Center in ties in Guangdong, Hong Kong SAR, and
Kong? Look at the demographics and the June 2018 with the goal of connecting its Macao SAR,” adds Flinn.
map and the growth opportunities are offices in “key GBA cities of Hong Kong, Ng of Zhong Lun says that with the
obvious,” he says. Guangzhou, shenzhen, and Hainan to trade war continuing, Hong Kong profes-
But, while PRC law firms may be on create cross-office, cross-jurisdictional sional services firms need to be proac-
the rise, Ng says there remain percep- practice teams, targeting the antici- tive. “We cannot sit around and wait until
tions that such firms “are not competi- pated areas of opportunity from the the market settles down but are keeping
tive in what they offer to clients and their GBA arising from fintech and financial busy as clients adjust to the new trade
lawyers versus international law firms. services to corporate compliance to and capital routes,” he says, predicting
That is primarily a recruitment issue cross-border disputes.” that “inevitable changes to the market
and not a client issue. That perception will be massive.”
is changing, and we are seeing many U N C E RTAIN T Y AHE AD “There will be increased M&A,
more lawyers at all levels moving away As lawyers look back over this past year, moving assets and production facili-
from international law firms to Chinese they become wary of making predictions ties around. The prospect of nationalist
law firms. That will accelerate.” for the year ahead. If 2019 has taught economic policies by developed coun-
Hong Kong’s businesses and profes- tries will result in huge changes to the
BAY O F P L E NT Y O PP ORT U N IT IE S sionals anything, it’s to expect the movement of capital and investments.
In February, China released a blueprint unexpected. Supranational organisations will try even
for its Greater Bay Area initiative – a Hayden Flinn, co-chief executive harder to flex their muscles and justify
master plan for the region that promises at King & Wood Mallesons in Hong their existence,” Ng predicts, adding that
capital raising, construction, infrastruc- Kong, tells Asian Legal Business that this will provide new opportunities for
ture, innovation and technology oppor- listing, debt issuance and M&A will “nimble” lawyers. But, he warns, Hong
tunities. While the details provoked remain a focus for the firm, but he Kong’s lawyers should take stock of the
interest, firms are still grappling with predicts a slowdown and a period of way they work. “It ain’t a cookie-cutter
practicalities. uncertainty in the short run. world anymore. Are Hong Kong’s cookie-
Ng sees the opportunities available “It is still early to make predictions cutter lawyers, who jump from job to
but says he will wait and watch. “These – there are still unpredictable factors job every 18-24 months, ready for the
initiatives start with great fanfare but will such as the U.s. presidential election. change?” he says.
Despite market instability and its impact
W W W. LEG ALBU SINES S O N L I N E.CO M A S I A N L EG A L B U S I N E S S – D EC E MB E R 2019 17You can also read
