Freshfields Bruckhaus Deringer's Beijing managing partner is leaving the firm to launch a Hong Kong law practice for Davis Polk & Wardwell, reports The Am Law Daily.

Antony Dapiran (pictured), a capital markets lawyer at Freshfields, has taken roles on several high-profile transactions for Chinese state-owned enterprises, including working side-by-side with Davis Polk representing Agricultural Bank of China on its dual listing in Hong Kong and Shanghai, which this week became the world's largest initial public offering (IPO) ever with over $22bn (£14bn) raised.

Davis Polk has also recruited Bonnie Chan from the Hong Kong Stock Exchange, where she was senior vice president of the listing division and head of the IPO transactions department.

Chan, who joins the New York-based US firm as a partner to help launch the new practice, has also held senior in-house positions at Morgan Stanley and Deutsche Bank.

William Barron, Davis Polk's Hong Kong-based Asia head, said the firm decided some time ago to launch a Hong Kong practice but it had been waiting to find the right people.

"We are just thrilled to be getting the calibre of people that we have," Barron said. "Our goal is to be one of the leading players in this practice. We're not doing this to be an also-ran."

Several US firms have recently launched local practices in Hong Kong, including Skadden Arps Slate Meagher & Flom, Latham & Watkins and Shearman & Sterling.

Many of these firms have in the past been wary of the lower rates local work commands as well as Hong Kong's status as a former British colony with an inherited UK legal system, making it the home turf of the magic circle firms, most of which have large local practices.

Michael Liu, who joined Latham & Watkins in Hong Kong as part of a seven-partner departure from Allen & Overy (A&O) two years ago, says Davis Polk has recruited a "formidable" pair and predicts a continued shift in the competitive landscape between UK and American firms.

"In five year's time, if we look at who the leading international firms are in China and Hong Kong, one should not be surprised if the majority are of US origin and not UK origin," says Liu, now Latham's Hong Kong managing partner.

David Johnson, a partner in A&O's Hong Kong office, agreed that the magic circle firms will face tougher competition for talent and business. "Davis Polk is clearly saying it wants to be all the way here," said Johnson. "They're bound to take their share of the market. We all have to take note of that."

But he noted that most of the magic circle firms already have substantial US law capabilities and can already offer clients in the region a "one-stop shop." "There will certainly be more competition, but anyone worth their salt is looking forward to it," he said.

The Am Law Daily is a blog on law.com, Legal Week's US affiliate title.

Click here to read Legal Week's in depth China feature