Hengeler Mueller is to close its Shanghai office following a quieter period of M&A activity in the Chinese market, according to a person close to the situation.

The move will leave the German firm without a permanent base in Asia.

The firm, which opened the Shanghai office in 2014, is expected to close the base in the middle of 2020. The firm's sole partner in Shanghai, Changfeng Tu, will likely move to an investment firm, the person said.

The decision was made following Hengeler's annual partners meeting, in which the firm also promoted four Germany-based lawyers to partner.

A person with knowledge of the situation attributed the closure to the "fairly low" levels of M&A work in the region, and that after a review it was decided there was no need to maintain the office.

The firm's remaining offices outside of Germany are in London and Brussels.

Hengeler is part of the network of six European 'best friend' firms. The network has a presence in the China market, primarily through Slaughter and May's Beijing office, De Brauw Blackstone Westbroek's presence in Shanghai, and Uría Menéndez Abogados's base, also in Beijing.

Elsewhere in Shanghai, intellectual property firm Rouse hired Douglas Clark, the former Shanghai office managing partner of Hogan Lovells, as its global head of dispute resolution earlier this month.

Other firm closures in Asia include McDermott Will & Emery, which closed its Seoul office in July.