EY's Hong Kong law practice to shut down

Ernst & Young LLP's legal affiliate in Hong Kong is shuttering next month, according to the head of the local practice.

LC Lawyers, the Hong Kong law firm member of the Big Four auditor's global network, will cease operations on Jan. 23, its managing partner Rossana Chu confirmed by phone to Bloomberg News on Tuesday. Chu, one of the firm's four legal experts based in the city, declined to comment further on the move.

The independent Hong Kong-based 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 Co Ltd. in 2022, according to the China Business Law Journal.

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The shuttering of LC Lawyers comes as law firms in mainland China and Hong Kong have faced an increasingly difficult operating environment, including over tightened mandates on cybersecurity and sluggish growth in the world's second-largest economy. Chinese authorities have urged state-owned firms to phase out use of the four biggest international accounting firms over data security concerns.

A representative for EY didn't immediately respond to a request for comment. The news was first reported by specialist site Law.com International.

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 LLP also laid off 30 lawyers from its offices in Beijing, Shanghai and Hong Kong over a prolonged downturn in the China market.