Two U.S. firms recently made opposing moves in Hong Kong: Orrick, Herrington & Sutcliffe decided to close its office there after 15 years, whereas Steptoe & Johnson LLP launched a new office in the city.

Hong Kong is the most popular office location in Asia for global law firms. The city's legal market is fully liberalized and firms have a menu of options to practice local law, U.S. law or U.K. law; corporate or finance; litigation or arbitration—you name it. That has made Hong Kong an incredibly competitive market. Even without additional challenges that include recent protests and the coronavirus, Hong Kong's legal market requires carefully implemented strategies—and some luck—to succeed.

At almost the same time, Orrick and Steptoe ended up having polar opposite views about the market in Hong Kong.  Orrick CEO Mitch Zuklie doesn't hide his pessimism. He doesn't think the firm can achieve in Hong Kong the success it has elsewhere in Asia. Meanwhile, Steptoe is betting on Hong Kong's role as a regional center for clients' legal needs, not only in China but in Asia more broadly.