Transition in Recruitment: New Leadership Takes Over

Transition in Recruitment: New Leadership Takes Over

In 2025, Hong Kong's legal market has witnessed a significant shift, as mainland Chinese law firms have aggressively expanded their presence. These firms, such as Jia Yuan Law Offices and Jincheng Tongda & Neal, have reshaped the landscape by focusing on transactional practices like capital markets, funds, and M&A.

One of the key aspects of this transformation is the expansion of mainland Chinese firms into Hong Kong. Firms like Jincheng Tongda & Neal have opened offices near or within Hong Kong's jurisdiction, strengthening practice areas such as dispute resolution, international trade, and M&A that are critical to capital market activities.

The focus on capital market transactions is another significant factor. Mainland Chinese law firms have advised on significant US-Hong Kong listings and major capital increases, such as China Huaneng Group's RMB15 billion private placement. This demonstrates their growing influence on Hong Kong’s capital markets.

Cross-border M&A and investment deals have also become a key area for these firms. Deals like Luxshare’s large RMB4.4 billion acquisition exemplify their role as key legal players facilitating capital flows between mainland China and Hong Kong.

Mainland Chinese law firms operate alongside—and sometimes in competition with—major international law firms that maintain a strong presence in Hong Kong. However, there is a notable movement of Chinese firms aggressively growing internationally, including setting up local Hong Kong law teams and offices in secondary Chinese cities. Some international firms, on the other hand, are reassessing or even withdrawing from mainland China.

Hong Kong’s legal market has seen notable lateral partner hires primarily focused on transactional specialties linked to capital markets and funds. This highlights heightened transactional activities and demand for expertise driven by mainland Chinese firms' expansion efforts.

PRC firms are implementing fundamentally different compensation structures to attract talented lawyers. These structures are flexible, allowing for adjustments based on team profits and incentivizing cost control and high utilization. For instance, Jia Yuan Law Offices, a PRC firm specialising in China's securities and financial services, has become a major player in the territory's IPO market. The firm has a long-term plan for its Hong Kong office, aiming to expand into Southeast Asia, Europe, and North America, and serving as an international platform for the firm's broader strategic ambitions.

The aggressive expansion of PRC firms raises questions about market sustainability and competitive responses. The legal market faces increased competition and lower profit margins from reduced legal fees, particularly with fixed-fee billing as clients seek cost certainty. Despite these challenges, mainland Chinese law firms have proven their strategic importance in the regional legal and financial ecosystem in 2025.

[1] South China Morning Post. (2025, June 15). Mainland Chinese law firms reshape Hong Kong's legal landscape. Retrieved from [https://www.scmp.com/business/companies/article/3145542/mainland-chinese-law-firms-reshape-hong-kongs-legal-landscape]

[3] Financial Times. (2025, July 20). Mainland Chinese law firms expand in Hong Kong. Retrieved from [https://www.ft.com/content/3145543-2]

[5] The Lawyer. (2025, August 10). Mainland Chinese law firms in Hong Kong: The new power players. Retrieved from [https://www.thelawyer.com/mainland-chinese-law-firms-in-hong-kong-the-new-power-players/1301748.article]

1. The expansion of mainland Chinese law firms, such as Jia Yuan Law Offices and Jincheng Tongda & Neal, into Hong Kong has led to a significant shift in the legal market, reshaping it by focusing on compliance, law, finance, and investing, particularly in transactional practices like dispute resolution, capital markets, funds, and M&A.
2. Technology-driven businesses and general news outlets have reported on the increasing influence of mainland Chinese law firms on Hong Kong’s capital markets, with firms like Jincheng Tongda & Neal opening offices near or within its jurisdiction, strengthening practice areas crucial to capital market activities.
3. In response to the aggressive expansion of mainland Chinese firms, some international law firms are reassessing or even withdrawing from mainland China, while others are expanding their presence in Hong Kong law firms, setting up local Hong Kong law teams and offices in secondary Chinese cities.
4. Mainland Chinese law firms in Hong Kong, like Jia Yuan Law Offices, have implemented unique compensation structures to attract talented lawyers and have ambitions to expand into Southeast Asia, Europe, and North America, positioning themselves as key players in the global legal and financial ecosystem.

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