Practice builds on a solid foundation (hktdc.com)


	Partner Stuart Valentine says the Hong Kong strategy has given Mallesons a competitive edge

Hong Kong has proven to be the critical link in Australian law firm Mallesons Stephen Jacques' aggressive international expansion strategy.

After positioning itself to serve an emerging clientele in the region, Mallesons has grown to become one of the top 10 law firms in Hong Kong, with over 70 legal staff including 15 partners.

Mallesons came to Hong Kong in 1989, drawn by the city's "very significant" commercial and legal market and its status as an important hub in the Asia Pacific.

Partner Stuart Valentine says the firm adopted its Asia-centric strategy before most other major Australian law firms were able to see the opportunity in the region.

"When we opened our offices in Hong Kong, two leading construction lawyers, David Bateson and Paul Starr, helped to found the practice here. David and Paul have grown the practice to make Mallesons one of Hong Kong's leading law firms in the area of construction, projects law and dispute resolution, a position we have held consistently for the past 10 years," Mr Valentine said.

Branching out

The practice has followed its clients around the region, becoming involved in projects from as far a field as Thailand, the Philippines, and most recently handling construction contracts for a casino in Macau. Building on its mature construction practice, Mallesons then brought out specialised partners from Australia to develop a first class securitisation, structured finance and debt capital markets practice.

A subsequent merger with local firm Kwok & Yih propelled the firm into a full service commercial practice including corporate, equity capital markets and commercial dispute resolution. In 2004, Mallesons took on the Beijing office and lawyers of Denton Wilde Sapte, further strengthening its capability in China.

Mr Valentine said Hong Kong remains an important hub in the Asia-Pacific.

"Chinese companies prefer to use the Hong Kong Stock Exchange as the favoured method for raising international capital. Many of the investment banks and senior decision makers are headquartered in Hong Kong although they do a fair amount of business in the Chinese mainland. Hong Kong is a very easy place to do business in for these clients, who often oversee not just China, but other markets in Asia as well, so it still makes sense for the bulk of our operations in China to be based in Hong Kong."

Top talent


	With a forward vision based on its success so far, Mallesons' Managing Partner Larry Kwok explains why "the strategy is working"

Larry Kwok, Managing Partner, China, said a combination of local talent and Mallesons' expertise and resources had seen the firm rise to match and equally compete with the leading international firms operating in Asia.

"Last year we were one of the most frequently used law firms advising companies listing on the Hong Kong Stock Exchange, and we were ranked 6th in the M&A league tables for Asia. We have also successfully developed several new practice areas in Hong Kong over the past 18 months including property funds and renewable energy. So we think the strategy is working so far."

Mr Valentine said the Hong Kong strategy had given Mallesons some "natural advantages" over its competitors.

"The vast bulk of our lawyers are based in the same time zone allowing our clients access to large teams who can work with them in real time. We are also the natural choice of advisor for potential investments into Australia.

"Another is the specialist expertise and experience we have in Australia that can successfully be transferred to Asia, for example, a current major development in the Hong Kong and China capital markets today is setting up Real Estate Investment Trusts (REITs). We have real expertise in Asian REITs having established a strong Hong Kong presence to meet demand here. It could be a huge market for us as the mainland Chinese look to make big investments in property, and we are already actively advising in a number of these transactions. Our emphasis on hiring and developing local talent means we have the necessary language skills and good relationships with governments and other stakeholders."

Stable platform

Mr Kwok said the firm is strongly committed to its growth in the region, using Hong Kong as the platform.

"Hong Kong will continue to maintain its position as an important hub for doing business in Asia and Australia. China is a vast market, but we also serve a large number of clients doing business in the rest of Asia, including in South Korea, India, Singapore and elsewhere. These clients use the resources that Hong Kong has to offer in terms of the significant legal and financial services that have been built up here."