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The number of US lawyers applying to practice local law in Hong Kong has quadrupled over the past two years as the region becomes a hot spot for companies listing on its stock exchange.

Figures from the Hong Kong Law Society show that 64 US lawyers took the Hong Kong overseas lawyers qualification examination (QLQE) exam last year compared to 14 in 2008, and the trend looks set to continue with an estimated 65 having taken the exam so far in 2010.

The news comes as a number of US firms in the region have taken the decision to start practising Hong Kong law, hiring from local firms and sending their existing lawyers to sit the region's QLQE.

Davis Polk & Wardwell and Shearman & Sterling are the latest to make the change, both now practising local law since the summer, hiring two local partners apiece and sending their teams to retrain as local lawyers.

Shearman Asia managing partner Matthew Bersani (pictured) said: "We realised that Hong Kong law was becoming increasingly important. First, clients were demanding we had Hong Kong law capability because of People's Republic of China companies; second, it was necessary to support a growing M&A business in the region generally; and third there has been a huge increase in the interest in Hong Kong listings. Any firm worth its salt has already acquired or is looking to acquire Hong Kong law."

A number of US firms including Skadden Arps Slate Meagher & Flom, Paul Hastings Janofsky & Walker and Latham & Watkins have been practising local law for some time now, increasing the pressure on competitors to follow suit. Historically, many London-based firms have already moved into local law.

Paul Hastings Hong Kong chair Neil Torpey said: "This trend reflects Hong Kong's increasingly important role as a global capital market, and firms wanting to offer their clients from other parts of the world the same services that they offer in London, New York and their other international financial centres."

Hong Kong Law Society president Huen Wong said: "The rise [in lawyers trying out for the exam] ties in with the increase in the number of foreign firms that have set up a practice in Hong Kong three or more years ago to maximise on the increase in work."