Herbert Smith transfers Hong Kong ECM associates to grapple with IPO slump
Herbert Smith has transferred associates from its equity capital markets team in Hong Kong to alternative practice areas and other regional offices, as it struggles to grapple with the slump in Asia's once flourishing IPO market.
September 27, 2012 at 08:03 PM
2 minute read
Herbert Smith has transferred associates from its equity capital markets team in Hong Kong to alternative practice areas and other regional offices, as it struggles to grapple with the slump in Asia's once flourishing IPO market.
The UK firm said a group of fewer than 10 fee earners had been seconded to clients in the banking and commercial sectors, while another group – also fewer than 10 – had been re-assigned to its disputes practice across its Asian offices. Some associates have also been moved to Herbert Smith's capital markets team in Singapore.
No partners have been affected by the move and according to a spokesperson there are no planned redundancies anywhere in Asia.
The spokesperson also said employees would continue to receive their normal salaries throughout the secondments, which could last months or years depending on the individual.
"We have made nobody redundant in Hong Kong and there are no planned redundancies anywhere in Asia," the firm said in a statement.
"In response to the current low levels of activity in capital markets in China, we obviously have to ensure our resourcing levels are aligned to market demand. They include client secondments and reassigning resources to other practice areas. This is entirely prudent and good business practice.
"In addition, a small number of people have left the firm who we did not immediately replace as we have four new qualifiers starting later this year."
Herbert Smith's decision to re-assign employees comes as the Asian securities market is expected to remain quiet until at least the beginning of next year.
Hong Kong's much-touted IPO sector in particular, which proved extremely lucrative during the first half of 2011, has seen a string of high profile listings cancelled or postponed.
Herbert Smith is among several firms to be affected by the slowdown. Last week, Clifford Chance (CC) said it had asked associates from its capital markets team in Singapore to take voluntary sabbaticals, whilst Allen & Overy asked four Hong Kong partners to leave in June.
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