The merger between King & Wood and Arculli Fong & Ng, after a three-year association in Hong Kong, will see the first PRC firm permitted to practice Hong Kong law

The execution of King & Wood's strategy to obtain the right to practice Hong Kong law began in April 2006, when the firm opened its Hong Kong office and established its association with Hong Kong firm Arculli Fong & Ng. Now, the mainland powerhouse has finally announced the completion of the merger with Arculli Fong & Ng.

As a result of the merger, all 13 partners and 45 legal professionals at Arculli Fong & Ng will be fully integrated into King & Wood, and a number of corporate, securities and finance partners from the firm's Beijing and Shanghai offices will become residents of Hong Kong.

The merger allows King & Wood to become the first PRC firm to offer dual capability (Hong Kong/PRC law) for its clients. French firm Gide Loyrette Nouel and US firm Hogan & Hartson are two other firms that have completed the localisation process in recent months, allowing them to practise Hong Kong law.

It is likely that King & Wood's merger will pave they way for other PRC firms to follow in its footsteps. The most likely contenders are Jun He and Duan & Duan, both of which have been associated with a Hong Kong firm for at least one year.