The Hong Kong legal market is in the midst of a significant shift. Since 2022, many of the city’s largest international firms have streamlined operations, while Chinese firms have expanded rapidly and new entrants continue to establish a presence.
Figures reported by Law.com International show that several global firms have reduced their headcounts over the past two years, with some U.S. practices cutting lawyer numbers by as much as a third. Global firms operating under verein structures have also seen double-digit declines, reshaping the rankings of Hong Kong’s largest foreign firms and creating a new competitive landscape.
By contrast, the Magic Circle has largely maintained its scale, with one firm even showing modest growth. King & Wood Mallesons, the largest Asia-Pacific headquartered practice, continues to lead in size despite a slight reduction, while firms undergoing mergers or separations now employ fewer lawyers than they did pre-restructuring.
Yet, despite these adjustments, the Hong Kong Law Society reports year-on-year growth in both registered foreign lawyers and firms—clear evidence that the city remains an attractive and competitive legal hub. Looking ahead, international and local players alike are rebalancing resources in preparation for the next cycle of growth.
IPOs on the Rise
Hong Kong’s IPO market is heating up again—an encouraging sign for international practices with strong capital markets and transactional platforms. For leaner U.S. firms, the rebound offers the chance to capture premium mandates and reinforce their reputation for handling complex, high-value deals.
Meanwhile, Chinese firms are continuing their expansion and are increasingly competitive in attracting both talent and mandates. The result is a more dynamic, competitive market—one where firms with agility and focus will be best placed to succeed.
Beyond IPOs: A Broader Uptick in Hiring
At Sonder Consultants, we are also seeing a huge increase in open roles and mandates across the market. Arbitration, funds, and finance are particularly active areas, alongside transactional hiring. These opportunities span U.S. firms, the Magic Circle, and offshore practices—demonstrating that the uptick is not confined to capital markets alone.
For talented lawyers, the current environment offers far more choice and a chance to take advantage of a market that is once again in motion.
Sonder’s Market Insight
Sonder Consultants was recently featured in Law.com International’s coverage of these changes, with Sonia Taylor, Head of Asia, highlighting the opportunities ahead:
“With Hong Kong IPOs becoming hot again, I do believe we will see two major arenas succeed—U.S. firms such as Skadden, Davis Polk or Cooley, and PRC firms that are booming.”
Market shifts are clear: firms are adopting a more cautious and selective approach to recruitment, focusing on targeted hiring to strengthen core practices rather than pursuing broad expansion. At the same time, emerging opportunities are reshaping the landscape. Chinese firms are increasingly using Hong Kong as a launchpad for their regional and international ambitions, introducing a powerful new competitive dynamic into the market.
If you’re a lawyer considering your next move in Hong Kong—or a firm looking to attract the right talent—get in touch with Sonder Consultants. Our Asia team is here to guide you through every step of the process.
