EY to closes doors in city amid weak market

Ernst & Young's legal affiliate in Hong Kong is shuttering next month amid a weakening market.

LC Lawyers, the Hong Kong law firm member of the Big Four auditor's global network, will cease operations on January 23, according to its managing partner Rossana Chu, one of the firm's four legal experts, declined to comment.

The independent law firm provides a range of services, including on IPOs and corporate finance, mergers and acquisitions, private wealth, and legal and regulatory compliance, according to its official website. It acted as Hong Kong counsel to Chinese sportswear company Li Ning (2331) in 2022, according to the China Business Law Journal.

EY said it is adjusting to ensure services to clients will not be affected.

The shutting down of LC Lawyers comes as law firms in China and Hong Kong have faced an increasingly difficult operating environment, including over-tightened mandates on cybersecurity and sluggish growth.

Chinese authorities have urged state-owned firms to phase out use of the four biggest international accounting firms over data security concerns.

In August, the global law firm Dentons announced it would split from its Chinese operations over regulatory changes, including those related to data privacy, cybersecurity, capital control and governance.

The London-based law firm Linklaters also laid off 30 lawyers from its offices in Beijing, Shanghai and Hong Kong over a prolonged downturn in the China market.