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Hong Kong

The Hong Kong legal market is in recovery mode following a difficult first half of the year. As is the case for much of the rest of the world, firm revenues dropped off dramatically early in 2009 but now have seen a pick up as the region’s economy generally strengthens and foreign investment once again pours in. Overall, most international firms see Asia as a future growth centre and are keen to set up new offices or expand their existing practices.

Firms

Hong Kong is well-represented by a huge variety of international firms. In addition to local Hong Kong firms, the UK Magic Circle, Silver Circle, US as well as Australian firms all have a presence in the region. Most of these offices are substantial and there is still choice for in-demand practice areas when it comes to applying for a role. The top areas in demand are Corporate, Finance, TMT/IP and Projects. Many of the roles require Asian language skills with Mandarin as the language of business.

Salaries

Hong Kong salaries have traditionally been higher than UK salaries. However, over the past three to four years, UK salaries increased dramatically to the point where they have overtaken these. Now, however, Asia salaries are overtaking salaries in the UK, which are flattening and the playing field is generally more level. An indication of the average per month salary rates (figures in HK dollars) is:

FIRM	1 PQE	2 PQE	3 PQE	4 PQE	5 PQE
Top Tier	80,000	86,000	92,000	100,000	118,000
2nd Tier	72,000	77,000	82,000	90,000	96,000
UK Firms	95,000	110,000	120,000	130,000	137,000

Taxes

In HK the tax rate is only 16%, in addition to this, there are many other tax incentive schemes that one can take advantage of depending on circumstances which can drive this rate down.

Bonuses

Most firms in Asia paid healthy bonuses up to around 30% or 40% of salary until recently. The typical bonus last year for a Magic Circle firm was around two month’s salary, or roughly 15% of annual salary. Asia has however not escaped the effects of the global credit crunch so bonuses have dropped off from this peak.

Relocation Expenses

These days the typical package is for your flight to be paid for (including immediate family), the cost of shipping, a serviced apartment when you first arrive and assistance with getting set up (e.g. providing you with the services of an agent to help you sort out accommodation etc.). Some firms still offer an annual “visitation” flight home, depending on circumstances, but such benefits are mostly on the way out.

Visa Requirements

Firms will usually sponsor and candidates will generally need to be sponsored (unless you are entitled to an ancestry visa) and there is no HSMV equivalent. There is a Working Holiday Visa programme similar to that in the UK but this is only good for one year. If you are an Australian citizen you must apply to either the nearest Chinese Embassy or Consulate or direct to the Hong Kong Immigration Department for an Employment Visa.

Qualification Requirements

If you are admitted in an Australian jurisdiction, in order to be admitted in Hong Kong you must:

• Have at least 2 years of post admission experience;
• Pass the Overseas Lawyers Qualification Examination (OLQE); and
• Intend to reside in Hong Kong for at least 3 months following your admission.

The OLQE involves four open book written examination on the topics of Conveyancing, Civil and Criminal Procedure, Commercial and Company Law and Accounts and Professional Conduct, as well as an oral examination on the Principles of Common Law. If you have less than 2 years post admission experience in your home jurisdiction, you may accumulate this experience by practicing as a registered foreign lawyer.

Cost of Living

Hong Kong is one of the most expensive cities in the world to live in and consistently ranks in the top ten most expensive cities worldwide. High prices for vehicles and consumer durables all contribute to the high cost of living. However, public transport is inexpensive, as are groceries and many of the day to day expenses. Monthly rent for a one bedroom apartment in the mid-levels (a popular area within waking distance to Central) is roughly $15-20,000HK per month but note that the 16% tax rate offsets much of this and you can claim up to 40% of income as a deduction for accommodation costs.