The composition of this year's ALB China 20 list - an annual ranking of the country's largest law firms, remains relatively unchanged from last year's. This, however, in no way suggests the past year was an ordinary one. With renewed momentum, most of the largest firms have expanded further, either through organic growth or M&A, into new practice areas, new cities and even new countries. 

Dacheng, which was last year's largest firm in China and Asia by lawyer headcount, has successfully defended its top title. Over the past 12 months the firm has added 500 lawyers (equivalent to the entire Grandall legal group) and six new offices, becoming the first firm of Asian origin to employ over 1,000 lawyers. Now, 1,400 lawyers are working across Dacheng's 34 offices, some of which are in overseas locations

Dacheng's jaw-dropping rate of expansion was achieved through  absorption of other firms. In the first half of 2010 alone, the firm has merged with Shanghai firm De Qin, Guangzhou's Xin Yang, and Beijing's Kingfield and Fengqing firms. Apart from mergers and acquisitions, making aggressive lateral hires also fuels the firm's headcount. In Yunnan, Dacheng has recruited a strong team from local leading firm BaQian for the opening of its branch office there.

Its ambitions extend beyond domestic barriers though - the firm launched its Taiwan branch last month (through entering into a strategic alliance with a newly-founded local Taiwan firm which shares the same name) and also finalised its New York location at thesame time. In May, it officially staked a foothold in Hong Kong as a result of its merger with Xin Yang, a Guangzhou-based firm that opened an office in Hong Kong in 2006. Xin Yang's Hong Kong office has been renamed to Dacheng Hong Kong, after obtaining approval from the Law Society of Hong Kong. The Hong Kong office has been in association with local firm Wong Poon Chan Law & Co, and this relationship remains.

Compared to Dacheng, King & Wood, the legal industry magnate that holds second place on the ALB China 20 list, has experienced a much smaller increase in headcount (4% year-on-year). Yet it has managed to attract a number of top-calibre lawyers to join the partnership, including some who previously served as senior-level partners with leading international firms. For example, Rupert Li, previously the Beijing chief representative and partner at Clifford Chance, has swapped his partnership at the Magic Circle firm for a senior management position at King & Wood.He joined as international managing partner to lead the expansion of the firm's international business, including its Hong Kong office, and both in-bound and out-bound work for King & Wood. Apart from bringing additional technical expertise and market connectivity to its capital markets and M&A practices, Li's previous experience as the sole representative for Asia on Clifford Chance's partnership council will also benefit the firm's management and governance initiatives.

Another milestone for the firm in the past year was the completion of its merger with Hong Kong firm Arculli Fong & Ng. After a three-year association in Hong Kong, the merger has enabled King & Wood to practice Hong Kong law. All 13 partners and 45 legal professionals at Arculli Fong & Ng will be fully integrated into King & Wood's Hong Kong office. Currently, Jun He is the only other PRC firm that has completed the same localisation process in Hong Kong, allowing it to offer dual capability for its clients.

Jun He reported a very small increase in headcount compared to this time last year, but has made several noticeable lateral hires from international firms. Among the new appointments are partners James Zou and Zoe Wang from US firm Perkins Coie. The two new partners previously served as the US firm's Beijing and Shanghai managing partners, respectively.

Both are US-qualified lawyers and registered to practice before the US Patent and Trademark Office, and both focus on patent-related issues. Apart from bolstering the capabilities of Jun He's international IP practice group, they will be leading the development of the firm's soon-to-be launched Silicon Valley office.

Although partner lateral hires from international counterparts were not unheard of in the past, the necessity for PRC firms to make them now and the willingness of international partners to join local firms has never been greater.

 "Given the rapid market development and emerging client demand, leading PRC firms now have a huge need to recruit lawyers and partners with extensive international exposure and experience," said David Liu, a senior partner with Jun He.

"As they increasingly take on lead roles in cross-border transactions and investments, the ability to offer clients the combination of local and international expertise and capabilities is critical," he added. 

"From the partners' point of view, practising on a strong local platform is an increasingly attractive option. At a local firm, they are able to leverage their extensive local resources and local legal support to provide higher quality and a wider range of services to clients. Equally importantly, they can offer a more attractive value proposition to existing and prospective clients, as the cost base in even the very top-tier PRC firms is still noticeably lower than that of international firms," Liu said.

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