Milbank Tweed Hadley & McCloy is set to launch a local law practice in Hong Kong with the hire of Dieter Yih from Australian firm Mallesons Stephen Jaques.

Yih will join Milbank in January 2011 to head up the firm's new Hong Kong law practice.

He will operate independently from the firm until the middle of next year, while the three resident partners in Milbank's Hong Kong outfit complete their local Bar exams.

Under Hong Kong law international firms must have at least an equal number of locally qualified lawyers as foreign lawyers in their office in order to practise local law.

Milbank Hong Kong managing partner Anthony Root said: "The reason for doing this is not only to meet the surge in initial public offerings.

"It is our view there is a fundamental shift in global capital flows from the West to the East, and Hong Kong has an important role to play in that. My understanding is that most of the Wall Street firms are moving in this direction."‪

Yih joins the firm from the corporate and M&A practice of Mallesons' Hong Kong office. He is also the vice president of the Law Society of Hong Kong.

A number of firms have recently ramped up their presence in Hong Kong to target local work.

In August Allen & Overy relocated London partner Gary McLean to Hong Kong to co-ordinate the firm's corporate presence throughout Asia and Australia, while last month Withers relocated City lawyer Patrick Hamlin to Hong Kong to head up its litigation practice as the firm gears up to start offering local law in the new year.

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