Recruiting in China

China’s top grossing firms made 55 per cent more money in 2015 than two years previously, exclusive research by The Lawyer has revealed.

The Lawyer’s third edition of the China Top 30 report – an annual ranking and analysis of China’s leading law firms – found the combined revenue jumped from RMB12.95bn (£1.5bn) in 2013 to RMB20.16bn (£2.3bn) in 2015.

Revenue growth was largely fuelled by recruitment efforts including national expansion through regional bolt-ons.

The total number of lawyers in the top 30 firms increased by around 36 per cent in the same period, to 23,023.

In the two year time period many of the firms opened offices overseas or joined forces with established international firms.

Dentons (formerly Dacheng), King & Wood Mallesons (KWM) and Zhong Lun once again claimed the top three spots in the league table by total revenue, following double-digit revenue hikes.

Dentons, the biggest Chinese firm by revenue, saw its 2015 revenue grow by 29 per cent to RMB2.9bn from RMB2.25bn in 2014. KWM’s revenue increased at a slightly faster rate of 30 per cent to RMB2.1bn. Zhong Lun, the smallest of the top three, recorded the fastest growth, up 34.4 per cent to RMB1.98bn.

Below the top three, there were notable movements in this year’s top 30 firms by revenue list, including several new entries and exits. Shandong-based Jointide and Beijing-based JunZeJun dropped out of the table, while Shanghai’s Llinks and Shenzhen’s Guanghe made their first appearance.

Llinks posted a turnover of RMB236m after achieving a 50 per cent revenue? hike and claimed the 27th place as a result. Guanghe, riding on the country’s booming new over-the-counter equity exchange (new third board), which provides a speedy and favourable way of fundraising for start-ups, ranked 28th. It recorded a 69 per cent increase in revenue, from RMB136m to RMB230m.

The firms in the top 10 group remained largely unchanged on the previous year. However, AllBright, with a 48 per cent increase in revenue, moved up three places to fourth spot. Beijing-headquartered Jingtian & Gongcheng, with a 41.6 per cent revenue growth, made its debut in the top 10, replacing last year’s tenth high-grossing firm, JT&N.

Among the rest of the top 30 firms private equity and technology-focused Han Kun rose most rapidly, by six places to 17th. National giant W&H also moved up six places, to 19th. Beijing-based Tian Yuan was up five places to 11th, overtaking larger rivals such as Kangda, JT&N and Zhonglun W&D.

Some firms’ managing partners expressed concerns regarding continued growth prospects over the combing years, mainly due to China’s slower economic growth and greater uncertainty in some of the world’s largest economies.

However, many of the best performing firms expected to achieve a similar, if not faster, rate of revenue increase in the current financial year.

Top 30 by revenue (2015)
Rank 2015 Rank 2014 Rank Change Film
1 1 Equal Dentons (China)
2 2 Equal King & Wood Mallesons (China)
3 3 Equal Zhong Lun
4 7 increase AllBright
5 5 Equal Grandall
6 6 Equal Yingke
7 4 decrease JunHe
8 8 Equal Deheng
9 9 Equal Fangda Partners
10 13 increase Jingtian & Gongcheng
11 16 increase Tian Yuan
12 11 decrease Kangda
13 10 decrease JT & N
14 12 decrease Zhonglun W&D
15 17 increase Zhejiang T&C
16 14 decrease Zhong Yin
17 23 increase Han Kun
18 15 decrease Global Law Offices
19 25 increase W&H
20 18 decrease Longan
21 21 Equal Grandway
22 22 Equal Tahota
23 19 decrease Commerce & Finance
24 29 increase Haiwen & Partners
24 26 increase Beijing DHH
24 24 Equal Guantao
27 #### #N/A Llinks
28 #### #N/A Guanghe
29 27 decrease Co-Effort
30 30 Equal Hylands
Top 20 fastest growing firms by revenue (2015 vs 2013)
Rank Firm Two-Year Revenue Growth
1 Han Kun 185.7%
2 Guangdong Huashang 125.7%
3 Tian Yuan 117.8%
4 Beijing DHH 109.5%
5 Grandall 106.3%
6 Guanghe 98.3%
7 Zhong Lun 91.8%
8 Tiantong & Partners 90.0%
9 Zhejiang T&C 84.4%
10 Yingke 81.4%
11 Kangda 80.5%
12 Hylands 79.1%
13 Jingtian & Gongcheng 77.1%
14 AllBright 75.9%
15 Zhong Yin 72.6%
16 Dentons (China) 62.9%
17 Tahota 62.8%
18 JT & N 61.4%
19 Lifang 60.0%
20 Fangda Partners 58.3%
The Lawyer’s China Top 30 2016 report, released on 26 September 2016, identifies the top performing Chinese firms by various key metrics such as revenue, RPL, revenue growth and RPL growth last year.

The third annual edition of the report also contains three years of financial and technological data and indepth analysis on Chinese law firms’ strategies from some of the country’s most eminent lawyers.