City by the seax
Shanghai is one of the most vibrant cities on Earth, a mixture of old and new where eastern and western cultures merge. The Reporter profiles our office in his major financial center.
If Beijing represents the cultural heart of China, Shanghai is where the past meets the present.
The city’s futuristic looks are dominated by its iconic neon skyline, which towers above European inspired architecture giving a glimpse of Shanghai’s colonial past.
“I love working here because of the hardworking mentality and vibrant feel of the city.”
In recent years, Shanghai has become a major hub for international business, attracting trade from around the world.
Our office in the city was established in 2000 and has built a reputation for excellence, particularly in cross-border work.
The team includes 10 lawyers and nine business services professionals, with practice areas including Corporate M&A, Private Equity and Bank Finance work.
Office executive partner Alex Zhang explains: “We’re a small, close team, but what we lack in size we make up for in our strategic importance to the Firm’s global network.
“Regulations in China, plus the historically lower rates charged by local firms (the idea of hourly rates is relatively new in the market), restrict the amount of domestic work we do, meaning virtually all the work we perform has an international element.
Shanghai fact file
• Shanghai is the most populous city on Earth with 26.3 million people.
• The city has the longest metro system in the world, with 400 miles of track and 393 stations.
• There are more ex-pats in Shanghai than in any city in mainland China.
• Shanghai is situated on the delta of the Yangtze river. Its name means ‘upon sea’.
• The city ranked fifth in the 2018 Global Financial Centers Index.
• Shanghai has hosted the Chinese Formula One Grand Prix since 2004.
“Competition in the city is incredibly fierce, with around 200 international law firms present in China, but our truly global network, coupled with our local expertise and knowledge of international law, gives us an important edge.
“There are few international deals that don’t involve a Chinese element, so we’re regularly supporting our colleagues around the world.”
The office’s major clients include Magna Steyr, Huhtamaki Oyj, BVCF, Saudi Aramco, Nestlé Waters, Tianjin LOVOL Heavy Industry Group, Shandong Century Sunrise Paper Group and Haier Group.
Recent highlights have included the representation of Austria-headquartered automotive supplier Magna Steyr during its ongoing acquisition of a major electric vehicle manufacturing operation in Zhenjiang, China.
This has involved the restructuring and share acquisition of an existing car manufacturing company owned by BAIC Group, the largest state-owned car manufacturer in Beijing. A number of joint venture companies were then formed among Magna, BAIC Group and the local government in Zhenjiang Province.
The transaction is expected to close by the end of 2019 after antitrust clearance and completion of the state-owned asset auction process.
Another highlight has been the representation of our global key client Saudi Aramco on the formation of its joint venture with NORINCO Group (NORINCO) and Panjin Xincheng (Panjin), to develop a fully integrated refining and petrochemicals complex located in the north eastern province of Liaoning, China.
The deal completed in February and will result in the creation of a new company, Huajin Aramco Petrochemical Co. Ltd.
Alex explains: “Much of the work we do is inbound investment representing companies wanting to invest in China, and we aim to increase our outbound work as Chinese companies look to invest abroad.
“The recent trade dispute between the United States and China has had a major impact on the volume of outbound investment work between the two countries because of tighter controls, but we’re hopeful a resolution will be found.”
Alex has worked at the Shanghai office for the past eight-and-a-half years, having previously worked in Beijing, Hong Kong and the United States.
He says: “I love working here because of the hardworking mentality and vibrant feel of the city. On the one hand you have the history in the old financial district and, across the river on what used to be open fields, you now have the business district with its skyscrapers.
“We’ve got a young and friendly team here and I’m excited about what we can achieve in the future.”
“It’s a very congested city and the weather could be better, with high humidity and a lot of rain, particularly in the monsoon season, but I love living and working here because it has such a mix of people and cultures from around the world.
“For anyone visiting, I’d recommend the variety of the food, which includes the best of Chinese and western cuisine.”
The team is actively involved in several global citizenship projects, including having a team in the JP Morgan corporate running race, support for Families with Autism, and the Heart to Heart program, which supports the families of children with heart conditions.
Alex says: “We’ve got a young and friendly team here and I’m excited about what we can achieve in the future. We are certainly well placed to play an active role in helping deliver towards the Firm’s global strategy and its growth plans for the region.”
