Managing partner David Bulley has an ambitious plan for Appleby’s Asia development as he considers opening a second mainland office in 2025 as he prepares for his relocation to Shanghai after a four-year stint in Hong Kong.
“The Greater Bay Area is an exciting prospect, as we are seeing clients opening up (companies) in Shenzhen, Guangdong and other cities within the Greater Bay,” Bulley said.
Beijing is also among the contenders as Appleby is determined to build its market share in Shanghai, Beijing and Shenzhen, while the establishment of the second office is subject to the Ministry of Justice’s approval. Bulley also wants to build a new client base in tier-two cities.
While Appleby is still hammering out the location, it has extended its fiduciary business recently to Shanghai.
Bulley said the fiduciary business involved helping clients set up offshore companies, offshore trusts, advising clients on CRS (common reporting standards) and providing accounting services. The fiduciary service is offered via Appleby’s sister entity called Appleby Global Services (AGS).
The debut of legal services and fiduciary business together in Shanghai, was motivated by the success achieved in Hong Kong.
The Hong Kong office has been recording revenue and net income growth in the past three years. Without revealing its exact earnings, Bulley said the office recorded 27% revenue growth in 2023-24, ending on 31 March. He projects the office will see 19% growth in the current year.
Appleby’s China offices have attracted clients such as real estate developers, IPO debutants, investors seeking redemption rights and high net-worth individuals wanting to set up dynasty trusts.
The firm plans to hire more Mandarin and Shanghainese-speaking staff for its Shanghai branch, and Bulley wants to add one more dispute resolution partner and several associates. The branch has four Shanghai-based lawyers including litigation specialist Ben McCosker who joined in June this year, with Bulley to become the fifth based in Shanghai in November. Another three lawyers work between Shanghai and other global offices. The AGS team currently houses two newly recruited administrators.
Bulley is also looking to increase the Hong Kong branch’s manpower and Appleby will be moving into a bigger office later this year.
Appleby’s revamp comes against the backdrop of prominent US law firms closing offices in China. Increasing competition from mainland law firms has been one of the contributing factors to the exodus.
Bulley said that instead of competing with PRC firms, Appleby would work with their Chinese counterparts. “We are coming here offering a service which big PRC firms that are now dominating the market can’t offer, Cayman, BVI and Bermuda work, and so we are building strategic relationships with big law firms to provide their clients much better services in the offshore [sector].
“We are really investing in China. We are seeing the potential growth in offshore work in mainland China in multiple areas and as the only offshore firm who can offer both legal and fiduciary services in mainland China we have a lot of optimism for our Hong Kong and mainland China business.”
