Shift in Leadership: New Faces Assume Positions of Power
Jia Yuan Law Offices, a PRC firm specialising in China's securities and financial services, has become a major player in Hong Kong's IPO market. The firm has served as counsel on four of the six Hong Kong IPOs that have raised over 10 billion Hong Kong dollars since 2022.
This success is part of a larger trend among mainland Chinese law firms, which have expanded their presence in Hong Kong's capital markets. This expansion is driven by strategic partner hires, strengthening cross-border capabilities, and leveraging increasing Chinese company listings in Hong Kong due to capital raising advantages.
One of the key factors contributing to their success is recruitment and talent development. Firms like Jia Yuan Law Offices have attracted top legal talent by recruiting experienced professionals from leading domestic and international law firms. This has helped to raise the firms' profile and service quality in Hong Kong and other international financial centres.
Another factor is client trust and proximity. Chinese firms gain trust from Chinese companies expanding abroad, who prefer legal support from lawyers sharing language and cultural background. This reliance is especially significant amid rising geopolitical tensions that may complicate international dealings with non-Chinese firms.
Hong Kong remains a preferred venue for Chinese firms and companies due to its relative ease in raising capital compared with mainland China’s onshore markets. This enhances demand for mainland Chinese legal services in Hong Kong’s capital markets.
Mainland firms have also broadened their offerings, enabling them to address complex client needs comprehensively and differentiate themselves. They now offer services beyond IPOs, venturing into debt capital markets, investment funds, and cross-border advisory services.
Jia Yuan Law Offices, for instance, has added nine lawyers from international firms in just six months. This aggressive expansion is supported by Beijing's push for Chinese legal professionals to support outbound Chinese investment and the Belt and Road Initiative globally.
However, the legal market faces increased competition and lower profit margins from reduced legal fees, particularly with fixed-fee billing as clients seek cost certainty. To attract ambitious lawyers, PRC firms have implemented fundamentally different compensation structures. Instead of simply matching international firm salaries, they offer enticing profit sharing and bonus structures directly tied to billings and client origination.
The capital markets in Hong Kong have experienced a dramatic comeback in 2025, with record-breaking IPO activity. Hong Kong has raised $13.9 billion in IPOs and secondary listings in the first half of 2025, making it the global leader in capital markets. The territory's equity capital markets have seen 208 companies applying for primary or secondary listings on the Hong Kong Stock Exchange in the first six months of 2025, beating the previous record.
This aggressive expansion raises questions about market sustainability and competitive responses. However, PRC firms' flexible compensation structures incentivize cost control and high utilization, enhancing their adaptability in a dynamic market.
Lawyers with multi-jurisdictional experience and PRC client understanding are highly sought after, especially as PRC firms expand overseas. As the competition heats up, it will be interesting to see how the legal landscape evolves in Hong Kong.
- The success of Jia Yuan Law Offices, a PRC firm specializing in China's securities and financial services, in Hong Kong's IPO market is a part of a larger trend among mainland Chinese law firms.
- These firms are expanding their presence in Hong Kong's capital markets by leveraging increasing Chinese company listings, strengthening cross-border capabilities, and strategic partner hires.
- Top legal talent recruitment and talent development play a significant role in their success, with firms like Jia Yuan Law Offices attracting experienced professionals from leading domestic and international law firms.
- Chinese firms gain trust from Chinese companies expanding abroad due to their language and cultural background, which is especially significant amid rising geopolitical tensions.
- As competition in Hong Kong's legal market intensifies, PRC firms are offering enticing profit-sharing and bonus structures directly tied to billings and client origination to attract ambitious lawyers.
