By Colm Cronin
City firms' hopes of breaking into Chinese law have been dealt a blow, with the news that China is to allow Hong Kong (HK) lawyers to practice mainland law.
Though precise details have not yet been made public, Chinese Ministry of Justice Vice-Minister Duan Zhengkun has confirmed that the Chinese lawyers' exam is to be reopened to HK lawyers, giving them a huge competitive advantage over international firms in the region.
The move, which is expected to be implemented next year, will allow Hong Kong law firms to practice local Chinese law, giving them greater access to China's burgeoning corporate, finance and banking sectors. Hong Kong lawyers used to be able to take the mainland China exam but this was stopped in the early 1990s. The move returns that ability at a critical point in China's economic development.
Mark Roberts, managing partner of Deacons, one of Hong Kong's largest indigenous firms, said: "As a concept, it is very interesting as we see our future very strongly linked with China."
Hong Kong insiders said that the changes would probably lead to Hong Kong firms, many of which have international capability, merging with mainland Chinese firms.
Colm Cronin is editor of Asian Legal Briefing.