Legal Industry News & Trends: July Week 4

Legal Industry News & Trends: July Week 4

Legal Industry News & Trends: July Week 4

1. Market Pulse

i. Malaysia Emerge as Popular Destination for Outbound PRC Firms

What: Malaysia is becoming increasingly attractive to Chinese firms due to its strategic location, diverse economy, and lower business costs. China and Malaysia are enhancing cooperation in various sectors. This, coupled with Malaysia’s pivotal role in the ASEAN region and its active capital market, position the nation as a key destination for Chinese investments. Meanwhile, Malaysia’s talent pool and strategic initiatives in sectors like semiconductors and data centres add to its appeal.

Chinese law firms, such as Grandall and Yingke, are expanding into Malaysia as demand for legal services in cross-border investments, trade, and compliance rises. The Malaysian government’s support for foreign law firms and its liberalised legal services market further facilitate this expansion.

Implications: Over the next three to five years, China has a strategic opportunity to enhance its engagement with ASEAN through proactive policies, such as facilitating cross-border fund flows. By expanding their footprint in the ASEAN market, PRC law firms are poised to capture the legal needs arising from an anticipated increase in Chinese business activities. By establishing Malaysia as a central hub, they can integrate and expand their services across Southeast Asia, including Indonesia, Singapore, Thailand, and Brunei. Meanwhile, Malaysia’s strong connections with Islamic countries and other economies further bolster its strategic value for Chinese law firms seeking to expand into other regions.

Read the full article about PRC firms’ preference for Malaysia.

 

ii. Market Optimistic About Increased IPO Activity in Hong Kong

In 2023, the Hong Kong Stock Exchange (HKEX) introduced Chapter 18C rules for listing unprofitable specialist technology companies, following the 2018 Chapter 18A rules for biotech firms. These new regulations support more flexible listing by lowering thresholds, emphasising R&D investments, and requiring third-party investments. These consequently attracted high-quality tech companies and supported Hong Kong’s strategy to become a global innovation hub.

Despite global market uncertainties in the first half of 2024, including a subdued Hong Kong stock market, there have been positive signs of recovery. Deloitte reports that HKEX ranked ninth globally in IPO financing, raising HKD 13.178 billion by the end of June 2024. Although the number of new listings and total financing were down compared to the same period in 2023, there is optimism for increased activity in the second half of the year, bolstered by new measures from the China Securities Regulatory Commission (CSRC) and interest from A-share applicants.

Hong Kong’s Innovation and Technology Development Blueprint and the combination of Chapters 18A and 18C further support this by creating a holistic platform for tech company listings, drawing more high-tech firms to Hong Kong. AI companies, in particular, are turning to HKEX due to its more lenient listing standards than the STAR Market.

Read the full article about Hong Kong’s IPO projections.

 

2. Regulations

i. China Contemplates National Cybersecurity ID

What: China proposed a national cyberspace ID system to enhance data security and protect personal information online. This system uses a national authentication app that allows users to verify their identities without disclosing sensitive personal information. Currently, the initiative open for public comment, aims to reduce the over-collection of personal data by internet platforms.

Implications: Legal experts argue that while the system might simplify online transactions and reduce misuse of personal data, it could also lead to comprehensive tracking of individuals’ online activities.

Read the full paid article about China’s proposed national cyberspace ID.

 

ii. Japan Eases Registration Process for Foreign Lawyers

What: Japan’s Ministry of Justice streamlined the registration process for overseas-qualified lawyers to work in Japan. The move aims to help law firms and foreign lawyers save time and money. Under the new rules:

  • Law firms can reuse specific updated employer-related documents for registering foreign lawyers instead of resubmitting them each time.
  • Foreign lawyers re-applying for registration no longer need letters from former employers; a statement of previous approvals and registrations is sufficient.

However, the Japan Federation of Bar Associations has not yet adopted these changes, so they currently only apply to applications filed with Japan’s Ministry of Justice.

Implications: These streamlined changes are expected to significantly reduce administrative burdens for law firms and foreign lawyers, enhancing efficiency in the registration process and streamlining the process for firms looking to expand their practice in Japan.

Read the full article about Japan’s registration process for foreign lawyers.

 

3. Business Moves

i. Yingke Launches an Office in Tokyo

Beijing-headquartered Yingke Law Firm opened a new office in Tokyo, Japan. This marks their 48th overseas branch. The Tokyo office is led by Wu Ting, who has extensive experience in M&A, corporate restructuring, foreign direct investment and intellectual property (IP) transactions between China and Japan. The branch aims to build a team of 100 professionals and enhance Yingke’s ability to serve Japanese companies operating in China and support Chinese clients with their legal needs in Japan, including:

  • Japanese commercial law.
  • Legal due diligence and preparation of transaction documents for M&A, restructuring, and equity transfer transactions between China and Japan.
  • Divestment and liquidation.
  • Legal advice and dispute resolution related to technology transfer, licensing, and trademark and copyright protection.
  • Data and labour compliance.
  • Crisis management.

Read the full article about Yingke’s Tokyo office.

 

ii. Rimon Launches an Office in Tokyo

San Francisco-based law firm Rimon opened an office in Tokyo, marking its first entry into the Japanese market and extending its Asian presence to four cities. This follows the establishment of a Japan regional practice last year, which involved recruiting partners with expertise in cross-border issues affecting Japanese companies. The Tokyo branch will focus on:

  • Outbound transactions,
  • Disputes in the US, Europe, and Latin America.
  • US IP protection.

Rimon now has 50 offices globally, including locations in Shenzhen, Seoul, and Singapore.

Read the full article about Rimon’s law firm in Tokyo.

 

iii. Joint-Win Launches Chengdu Office

Shanghai-based Joint-Win Partners expanded its domestic presence by opening a new office in Chengdu, its tenth branch in China. The Chengdu office was established by five lawyers and led by Zhou Yan. It will specialise in:

  • High-end civil and commercial dispute resolution.
  • Enforcement-related disputes.
  • Infrastructure and construction projects.
  • Corporate governance and M&A
  • Legal counselling for government agencies and state-owned enterprises.
  • Criminal defence for entrepreneurs and public officials.

Read the full article about Joint-Win’s Chengdu office.

 

iv. Mori Hamada Secures Exclusive Asian Partnership with AI Platform

Mori Hamada & Matsumoto, one of Japan’s top law firms, partnered with Harvey, a global leader in AI solutions for the legal industry. This makes Mori Hamada the first Asian firm to gain exclusive access to Harvey’s open-ended API, allowing it to integrate advanced AI technology into its services. This partnership aims to enhance Mori Hamada’s legal offerings, particularly in large dataset reviews, document emain as the fidue diligence, drafting, and research.

Mori Hamada also formed a strategic alliance with LegalOn Technologies, a Japanese legal tech company. This collaboration will see Mori Hamada’s legal expertise incorporated into LegalOn’s AI platform, providing enhanced legal content and templates for M&A and international transactions.

Read the full article about Mori Hamada’s AI partnerships.

 

4. People Moves: Latham, TNB, Jia Yuan, Han Kun and Herbert Smith

Latham: Latham & Watkins appointed Goodwin’s partner, Elyn Xing, as counsel in its Singapore office to bolster its fund management and investment sectors. Xing has extensive experience advising Asia-based and global clients on various investment strategies, including debt, real estate, growth capital, and emerging markets. Her expertise covers private investment funds, co-investment vehicles, and separately managed accounts. During her tenure at Goodwin, Xing focused on private investment vehicles, particularly in energy and growth capital sectors. She began her career at Simpson Thacher & Bartlett in 2013.

TNB: Indonesia’s TNB & Partners, in association with Norton Rose Fulbright, hired Erie Tobing from Soemadipradja & Taher. Tobing is a specialist in disputes and arbitration and has extensive experience in sectors including construction, financial institutions, mining, shipping, and telecommunications.

Jia Yuan: Jia Yuan Law Offices hired two new partners, Zhou Liming and Zheng Huan, along with their teams, in Shanghai, Shenzhen, and Beijing.

  • Zhou, who was from TianTong Law Firm, has nearly a decade of experience in civil and commercial trial work and currently focuses on major construction and real estate disputes.
  • Zheng, who previously worked at Baoying Law Firm, has rich experience in frontline and legal management. He specialises in finance leasing, asset securitisation, project financing, non-performing asset recovery, and cross-border litigation and arbitration.

Han Kun: Han Kun Law Offices strengthened its bankruptcy and restructuring practice by bringing on board a team of experts from TianTong Law Firm:

  • Zhang Yao has over 17 years of experience and specialises in bankruptcy and restructuring of listed companies and large enterprise groups.
  • Du Wenle and Zhu Lei have 10 and 15 years of experience, respectively, and specialise in bankruptcy and restructuring.

This addition marks the latest in a series of significant partner-level hires for Han Kun this year.

Herbert Smith: Herbert Smith Freehills appointed commercial litigation partner Jojo Fan as the new managing partner for China. Fan succeeds Matthew Emsley, who will remain as the firm’s capital markets partner. Fan joined the firm from Baker McKenzie and became a partner in 2020. Fan specialises in China and cross-border commercial disputes. She has represented major clients like banks and corporations in significant legal matters, including defending BYD in multiple lawsuits across various jurisdictions. In her new role, Fan will focus on:

  • Outbound investments to Southeast Asia and the Middle East.
  • Sectors like energy transition, private capital, and technology.

Read the full article about Latham’s counsel from Goodwin.

Read the full article about TNB’s disputes partner from Soemadipradja.

Read the full article about Jia Yuan’s partners from TianTong and Baoying.

Read the full article about Han Kun’s bankruptcy and restructuring team from TianTong.

 

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  • Law.asia
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