Beijing Beijing. Photo: Shutterstock

Stephenson Harwood has decided to close its Beijing office and revamp its Hong Kong office to focus on litigation, corporate M&A and asset finance work following a strategic review of Asia operations earlier this year.

As a result of the review, the firm has shuttered its seven-year-old Beijing office and only resident partner Lin Chun-Hui will leave the firm. The office has lost most of its lawyers in the last couple of years. In 2018, the firm took over the legacy Beijing office of Troutman Sanders when the U.S. firm decided to exit Asia. But only a year after that, partner Allen Shyu, who led the 11-fee earner Troutman team that included Lin, left for Akin Gump Strauss Hauer & Feld.

Meanwhile, the firm has replaced longtime Greater China managing partner Voon Keat Lai with restructuring and insolvency lawyer Jamie Stranger. With Stranger's appointment, the firm also aims to refocus its Hong Kong office to be better aligned with its overall core practices including litigation, M&As, asset finance and private wealth matters.

"As one of the first international firms to establish a presence in Hong Kong we enjoyed an 'early mover' advantage for many years. But it's important not to rest on your laurels and to continually look at ways to improve as a business," said Stranger in a statement.

"Having the right people in the right places to provide the expertise our clients expect is a priority for me," he said. "While that means that we will have to say goodbye to some friends and colleagues, like our small team in Beijing, it will also mean welcoming new lawyers with the experience and expertise to strengthen our core practices and support us as we build our business for the future.

This year, Stephenson Harwood promoted four Hong Kong lawyers in a round that included only six partners outside of the U.K.; disputes lawyers Alexander Tang, Elizabeth Sloane and Eloise Matsui, and corporate lawyer Michelle Chung made the cut.

Last week, Law.com International reported that Stephenson Harwood has laid off several corporate lawyers in Hong Kong, where the firm has had a presence for over 40 years. Several international firms in Hong Kong have resorted to cost-cutting in response to successive waves of business disruption caused by the city's political unrest and the ongoing pandemic.

"We are not alone in having had to reassess our priorities in [China], and in taking a more critical look at our presence there," Stranger said. "The changes we're making in Greater China are part of a long-term strategic reprioritization, not in response to the pandemic."

The firm underwent a strategic review of its Asia operations earlier this year, after new CEO Eifion Morris took over last year. In a statement, Morris said the firm's "commitment to Greater China is not in question," citing the recent partnership promotions in Hong Kong.

Meanwhile, the U.K. firm reported strong financial results in Singapore, with revenue for financial year 2019-20 exceeding expectation by 29%. Stephenson Harwood operates a formal law alliance with Singaporean firm Virtus Law. Morris indicated that the firm may explore more opportunities in Southeast Asia in addition to its Singapore base.

"While there's no doubt that Singapore is a critical hub for commercial activity in Southeast Asia … there's merit in having a presence on the ground, or 'best friend' relationships, in the places where our clients are investing. Places like Thailand, Vietnam and Laos," he said.

Currently, the firm is in association with Indonesian law firm Christian Teo & Partners and an office in Yangon, Myanmar.

In Greater China, Stephenson Harwood maintains an office in Shanghai in addition to Hong Kong. Disputes partner Evangeline Quek runs the office. In Guangzhou, the British firm has an association with Chinese firm Wei Tu.

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