Written by Joyce Lee, Associate Director at Lewis Sanders
Private Practice Hiring Activity in Hong Kong Q4 2024
The private practice job market in Hong Kong has been navigating a challenging landscape over the past year. While overall market sentiment may be subdued due to the global economic climate, there are signs of increased hiring activity across both onshore and offshore law firms in Q4 comparing to earlier this year and the same time last year.
Current market and hiring trends
In the context of ongoing market uncertainty, many law firms have seen a sustained period of reduced workflow and are therefore having to make selective redundancies. However, some firms are strategically ramping up their hiring efforts this quarter while adopting a cautious approach that prioritizes the filling of vacant positions. Redundancies and staff movements have created new opportunities across various practice areas this quarter, including corporate, litigation, TMT, funds, banking & finance, and private client & family.
Despite these opportunities, the legal job market within private practice remains competitive. The limited number of available positions combined with a substantial pool of active candidates has resulted in a high volume of applicants for openings.
Focus on Junior to Mid-level Associates and Partner-level hires
The private practice market is witnessing a demand for junior to mid-level associates particularly those at the 1-5PQE level. Simultaneously, due to strategic changes at various law firms, firms are on the lookout for partner-level candidates who possess a strong portable book of business but also proven business development skills. This dual focus reflects a strategic approach to build a robust talent pipeline while also ensuring that senior hires can contribute almost immediately to the firm’s revenue generation.
In addition, firms are increasingly seeking cost-effective hiring solutions. This shift may lead to a preference for candidates who not only possess the requisite skills but can also offer these capabilities at a more competitive cost compared to previous hiring practices, this includes law firms replacing senior lawyers by hiring more junior lawyers or paralegals.
Chinese Law Firms Continue to Expand
Most international law firms in the Greater China region face contractions or stagnation in the current global economic climate, with some exiting the market altogether. For instance, Skadden, Arps, Slate, Meagher & Flom recently announced the closure of its Shanghai office and layoffs within its China corporate practice.
Conversely, Chinese law firms are continuing to grow in Hong Kong, particularly in light of Beijing’s “going global” initiative. Mid-tier regional Chinese firms are establishing offices in Hong Kong, with the Guangzhou based Wang Jing & GH being a notable newcomer. This expansion trend underscores the increasing integration between mainland Chinese and Hong Kong legal markets, as PRC firms aim to capitalize on the city’s unique position as an international business hub and gateway to global opportunities. Furthermore, several PRC law firms have enhanced their practices by recruiting veterans from international law firms this quarter. For example, Jingtian & Gongcheng has strengthened its capital markets practice by adding two partners and a team from Morrison Foerster, and brought on IP Specialist Benjamin Choi from Oldham Li & Nie. Additionally, Han Kun Law Offices has welcomed capital markets specialist Steve Lin from Kirkland & Ellis.
Future Outlook
Despite firms are adopting a cautious approach in recruitment, there is a sense of optimism regarding the potential for more openings in the future. A report by Savills indicates that Hong Kong’s investment market is recovering following a recent reduction in U.S. interest rates. Additionally, KPMG has reported that Hong Kong has regained its position among the top five global IPO venues, prompting key market players to seek legal professionals with expertise in this area.
In summary, the legal job market in Hong Kong is characterized by a complex interplay of challenges and opportunities. While the job market in Q4 2024 reflects a gradual recovery, it remains shaped by cautious hiring, specific skill set demands, and a focus on cost-effectiveness. Legal professionals should remain vigilant and adaptable as the landscape continues to evolve.
If you have any questions or would like to discuss the job market or candidates in general, feel free to contact me via email (jlee@lewissanders.com) or WhatsApp (+852 6122 5272) for a confidential chat.
Q4/2024 Private Practice Update
Private Practice Hiring Activity in Hong Kong Q4 2024
The private practice job market in Hong Kong has been navigating a challenging landscape over the past year. While overall market sentiment may be subdued due to the global economic climate, there are signs of increased hiring activity across both onshore and offshore law firms in Q4 comparing to earlier this year and the same time last year.
Current market and hiring trends
In the context of ongoing market uncertainty, many law firms have seen a sustained period of reduced workflow and are therefore having to make selective redundancies. However, some firms are strategically ramping up their hiring efforts this quarter while adopting a cautious approach that prioritizes the filling of vacant positions. Redundancies and staff movements have created new opportunities across various practice areas this quarter, including corporate, litigation, TMT, funds, banking & finance, and private client & family.
Despite these opportunities, the legal job market within private practice remains competitive. The limited number of available positions combined with a substantial pool of active candidates has resulted in a high volume of applicants for openings.
Focus on Junior to Mid-level Associates and Partner-level hires
The private practice market is witnessing a demand for junior to mid-level associates particularly those at the 1-5PQE level. Simultaneously, due to strategic changes at various law firms, firms are on the lookout for partner-level candidates who possess a strong portable book of business but also proven business development skills. This dual focus reflects a strategic approach to build a robust talent pipeline while also ensuring that senior hires can contribute almost immediately to the firm’s revenue generation.
In addition, firms are increasingly seeking cost-effective hiring solutions. This shift may lead to a preference for candidates who not only possess the requisite skills but can also offer these capabilities at a more competitive cost compared to previous hiring practices, this includes law firms replacing senior lawyers by hiring more junior lawyers or paralegals.
Chinese Law Firms Continue to Expand
Most international law firms in the Greater China region face contractions or stagnation in the current global economic climate, with some exiting the market altogether. For instance, Skadden, Arps, Slate, Meagher & Flom recently announced the closure of its Shanghai office and layoffs within its China corporate practice.
Conversely, Chinese law firms are continuing to grow in Hong Kong, particularly in light of Beijing’s “going global” initiative. Mid-tier regional Chinese firms are establishing offices in Hong Kong, with the Guangzhou based Wang Jing & GH being a notable newcomer. This expansion trend underscores the increasing integration between mainland Chinese and Hong Kong legal markets, as PRC firms aim to capitalize on the city’s unique position as an international business hub and gateway to global opportunities. Furthermore, several PRC law firms have enhanced their practices by recruiting veterans from international law firms this quarter. For example, Jingtian & Gongcheng has strengthened its capital markets practice by adding two partners and a team from Morrison Foerster, and brought on IP Specialist Benjamin Choi from Oldham Li & Nie. Additionally, Han Kun Law Offices has welcomed capital markets specialist Steve Lin from Kirkland & Ellis.
Future Outlook
Despite firms are adopting a cautious approach in recruitment, there is a sense of optimism regarding the potential for more openings in the future. A report by Savills indicates that Hong Kong’s investment market is recovering following a recent reduction in U.S. interest rates. Additionally, KPMG has reported that Hong Kong has regained its position among the top five global IPO venues, prompting key market players to seek legal professionals with expertise in this area.
In summary, the legal job market in Hong Kong is characterized by a complex interplay of challenges and opportunities. While the job market in Q4 2024 reflects a gradual recovery, it remains shaped by cautious hiring, specific skill set demands, and a focus on cost-effectiveness. Legal professionals should remain vigilant and adaptable as the landscape continues to evolve.
If you have any questions or would like to discuss the job market or candidates in general, feel free to contact me via email (jlee@lewissanders.com) or WhatsApp (+852 6122 5272) for a confidential chat.