For over a decade, Hong Kong was seen as the global location of choice for companies looking to raise equity funds. However, in 2017 it slipped down the rankings behind not only its perennial rival New York, but also Shanghai. To counter this slide Hong Kong Exchanges and Clearing (HKEX) has relaxed its regulations with the intention of appearing more attractive to tech giants and biotech companies.
At the same time, as Hong Kong continues to act as a key gateway for Mainland Chinese companies to facilitate their vigorous mergers and acquisitions (M&A) strategies in the global market, corporate in-house legal teams are having to augment headcounts to keep up with demands.
Candidates with expertise in the following areas will be most sought after in the next 12 months:
- Equity Capital Management
- Debt Capital Management
- M&A
Since the start of 2018, there has been a concerted effort from companies in seeking out candidates skilled in the areas of Equity Capital Management (ECM) and Debt Capital Management (DCM), according to Adrian Lam, Business Manager at Hays Hong Kong.
“ECM and DCM lawyers have been making a comeback since the turn of the year. Much of this is due to the changing regulations for tech companies, but also companies are looking to utilise the U.S. capital market space to raise funds, so candidates with these skillsets are very desirable at the moment.
“But at the same time, corporate M&A is the staple of any in-house legal department in Hong Kong, and this trend is not only likely to continue, but to grow rapidly.”
The last decade has seen steady development in in-house legal departments in corporate Hong Kong. Whereas previously teams had been just one or two individuals with new recruitment centring around replacement and critical hires of mid to senior-level candidates, recently they have grown with hierarchies set in place, leading to a trickle-down effect on recruitment requirements.
“Over the past year we have seen more activity in the hiring of junior-level candidates as in-house legal teams grow to an average of six or seven employees, a situation that we expect to continue in the coming 24 months,” says Adrian.
Fortunately for companies growing their legal departments there is no shortage of candidates, as the move from law firms to in-house is a desirable one.
“Candidates are looking for work/life balance, career progression and salary in that order,” Adrian explains. “The hours in traditional law firms can be gruelling, and unless candidates are particularly ambitious in their desire to make partner level – something only 10 per cent may achieve – they will look to in-house as a way to improve their lifestyles.
“This is particularly prevalent for Generation Y candidates, for whom the culture of enjoyable environments and free-time is of the utmost importance. Fortunately for them, our clients are understanding of this, and working practices often reflect this inclination.”
Due to the attractiveness of in-house legal positions, competition for roles can be fierce, so companies may have exacting standards for candidates, especially in the upper levels.
“The absolute fit for a mid-level role is someone who has three-to-eight years post qualified experience, is trilingual and comes from an international law firm, preferably with a corporate M&A background and has spent one or two years in-house,” says Adrian.
“At senior-level they should have APAC experience, be well versed in commercial and transactional law, with both corporate and governance law knowledge. But most importantly they should be highly adaptable across a broad range of issues, as the fluidity of the role means that they may handle HR issues one day, deal with the acquisition of a family business the next morning, and then advise on a billion-dollar transaction that afternoon.”
But no matter the level of the candidate, a primary concern for employers is that they are a good fit for the corporate culture indicative of the company, due to the diversity intrinsic to the Hong Kong business domain.
“With both domestic and international companies operating in the territory, organisations are looking for individuals that can fit seamlessly within their operational values,” continues Adrian. “If a candidate is educated overseas and has spent their career working in MNCs, they may find working in a domestic company an ill-fit, and the same can be said of the converse circumstance.”
However, for candidates looking to work in the corporate in-house legal sector, they will find it a fulfilling and beneficial career path, according to Adrian.
“In-house legal is certainly a lifestyle change from law firms. It may be a bit of a salary cut, but that is more than made up for by a better work/life balance, a healthier body, mind and wellness.
“Candidates will find it a competitive area to access, but they should keep in mind that any experience gained in this field can put them on the right path to great career development and, perhaps, a more enjoyable life.”
An overview of what other trends have been observed in Hong Kong’s in-house legal sector can be viewed below.
- Candidates in the in-house legal sector tend to seek out improved positions every two and a half to three years.
- In order to ensure that newly acquired talent remains on-board, companies are offering incentives, such as improved share options and bonuses, that are paid out over extended periods of time.
- Companies developing in-house legal departments encourage their employees through sponsorship of upskilling, giving them opportunities to keep abreast of any legal changes.
- With cost-effectiveness in mind, the appointment of overseas candidates is unlikely with the exception of very senior roles.
- Candidates lacking in the experience or skills preferred by companies are advised to look to the off-peak season of December to February, when positions may not be as attractive, but competition is minimised.
To read the full Inside Story report of Legal in Hong Kong, please click here.
- Ends -
Hays, the world’s leading recruiting experts in qualified, professional and skilled people.
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About Hays
Hays plc (the "Group") is a leading global professional recruiting group and is celebrating its 50th anniversary this year. The Group is the expert at recruiting qualified, professional and skilled people worldwide, being the market leader in the UK and Asia Pacific and one of the market leaders in Continental Europe and Latin America. The Group operates across the private and public sectors, dealing in permanent positions, contract roles and temporary assignments. As at 31 December 2017 the Group employed 10,800 staff operating from 256 offices in 33 markets across 20 specialisms. For the year ended 30 June 2017:
– the Group reported net fees of £954.6 million and operating profit (pre-exceptional items) of £211.5 million;
– the Group placed around 70,000 candidates into permanent jobs and around 240,000 people into temporary assignments;
– 24% of Group net fees were generated in Asia Pacific, 49% in Continental Europe & RoW (CERoW) and 27% in the United Kingdom & Ireland;
– the temporary placement business represented 59% of net fees and the permanent placement business represented 41% of net fees;
– Hays operates in the following markets: Australia, Austria, Belgium, Brazil, Canada, Colombia, Chile, the Czech Republic, Denmark, France, Germany, Hong Kong, Hungary, India, Ireland, Italy, Japan, Luxembourg, Mainland China, Malaysia, Mexico, the Netherlands, New Zealand, Poland, Portugal, Russia, Singapore, Spain, Sweden, Switzerland, UAE, the UK and the USA