Why Big 4 rush to set up Legal Practices in Hong Kong?
The brand of the Big 4 in the accounting industry must be well known, but this is not the case in the legal sector. But in fact, in 2018, PricewaterhouseCoopers (PWC) and Ernst & Young (EY) have actively expanded their legal teams in Hong Kong. In the same year, it was reported that Deloitte also opened a law firm with 25 people. As to KPMG, the latest report states that she has established a law firm called SF Lawyers, which will have 20 lawyers and will operate with KPMG’s Australian law firm and be led by former King & Wood Partners.
Why the Big 4 have to scramble for the legal services market in Hong Kong has caused many speculations, but it is generally believed to be related to the upcoming establishment of the Greater Bay Area. This area has a population of 70 million, covering nine cities including Hong Kong and Macau in the Guangdong Province. It will be another technology and economic hub comparable to the Tokyo and San Francisco Bay Areas. Therefore, it is believed that the Big Four envisage the Great Bay Area will be another Pearl River Delta area, so it will hold a favorable position in the legal service market well in advance to provide a full range of professional services for the venture companies in Greater Bay Area.