Asialaw Profiles
The Guide to the legal markets of the Asia-Pacific

Paul Hastings has been a rising star when it comes to China-related capital markets work. The firm’s strong connections with China-related real estate developers have helped the practice earn many top mandates. This past year, partners Steve Winegar, Christopher Betts and Catherine Tsang joined the capital markets practice, and peers are taking notice.

One comments: “Paul Hastings has seriously invested in its capital markets practice, and it is seeing the results. I have lots of respect for Sammy Li in particular. He’s sharp and has great business sense. He’s a really up-and-coming young partner and I would say he’s the one to watch in Hong Kong.”

Last year, the firm’s capital markets partners advised China Rongsheng Heavy Industries on its US$1.8 billion Hong Kong IPO.

Christopher Betts, Raymond Li, Sammy Li, Vivian Lam and Steve Winegar are all known as top capital markets practitioners.

This past year, the Paul Hastings M&A team in China has been boosted by the arrival of former Goldman Sachs general counsel Steve Winegar in Hong Kong, as well as Roger Peng in Beijing. The firm’s volume of outbound M&A mandates significantly increased in 2010.

Clients are impressed by the multi-jurisdictional capability of Paul Hastings. One client says: “We’re actually very impressed by the level of cooperation and support among the firm’s major offices in the key financial hubs around the world. We were able to be supported both logistically and professionally by the Paul Hastings Hong Kong and London offices, and I would rate the firm as ‘five out of five’ for its international capabilities.”

Paul Hastings is known as a heavyweight in the construction and real estate market, especially when it comes to financing deals for real estate developments. The firm has deep relationships with top land holdings companies which use the firm for helping them achieve their goals in China. Partner David Blumenfeld is particularly well regarded in the real estate market.

In December 2010, Paul Hastings’ real estate team advised Hong Kong-listed China SCE Property Holdings in its five-year Rmb2 billion (US$301 million) synthetic offshore Rmb bond. This was unusual in the market because it was issued in Rmb but will be settled in US dollars.

Paul Hastings’ team also advised Sino-Ocean Land on the issuance by its subsidiary Sino-Ocean Land Capital Finance of US$900 million in perpetual subordinated convertible securities. This represented the first convertible securities issuance in Hong Kong and it was also one of the largest equity-linked deals in 2010.

Paul Hastings has a sterling labour and employment practice, which is led by veteran partner Lesli Ligorner who is also co-head of the firm’s worldwide employment law practice. Ligoner advises multinational corporations on employment law and regulatory systems in China, and receives praise from peers. “Everybody has a tonne of respect for Leslie,” says one. “She is undoubtedly a market leading lawyer and an authority on Chinese employment law. Her practice would have to be at the top of any employment table.”

Paul Hastings’ practice has a special focus on strategic employment counselling and anti-corruption litigation issues across diverse sectors such as finance, real estate and manufacturing.

Paul Hastings is known in the market for its prowess when it comes to real estate related transactions, and this has been a strong springboard for the firm’s banking work. Patricia Tan Openshaw and Brett King are key partners in the practice, with King also heading the banking team. Peers reserve special praise for King’s work. “If I were to make a list of the leading banking lawyers in Hong Kong and Greater China,” says one rival partner, “Brett King would be head and shoulders above the rest. He really is in a class by himself.”

This past year, the team advised ING Bank, Taipei Fubon Commercial Bank and Chinatrust Commercial bank in IK Investment Partners’ acquisition of Offshore Incorporations Group.

Paul Hasting’s capital markets team has also been picking up steam in the market, especially when it comes to real estate related equity work. Sammy Li is seen as an up and coming partner on the capital markets side.

Known for its strong relationships with companies and banks in real estate and construction-related matters, Paul Hastings’ M&A team receives a significant number of mandates from that sector. The team is equally strong in handling greater China outbound and inbound acquisitions.

Specialist David Blumenfeld is often praised by clients, with one saying: “We’ve been with Paul Hastings and David for five years, and we remain as a client because it is the best international law firm in China. It understands what the Chinese law says and knows how to get things done.”

Other leading M&A lawyers at Paul Hastings include Raymond Li, David Livdahl and Roger Peng.

Paul Hastings is known as a leading firm for real estate work, especially when it comes to supporting international developers and construction companies on cross border acquisitions. The firm’s growing capital markets team has also given it a comparative advantage in equity offerings and debt issuances for leading real estate companies. Leading partners David Blumenfeld and Joel Rothstein spearhead construction and real estate work out of Hong Kong. Partner Derek Roth was relocated from Paul Hastings’ Los Angeles office to Hong Kong in order to further bolster the construction and real estate practice in greater China.

In one signature capital markets matter, Paul Hastings advised Hong Kong listed China SCE Property Holdings on in its synthetic offshore renminbi five-year bond valued at Rmb2 billion (US$301 million).

Paul Hastings Janofsky & Walker has an established reputation in the energy and natural resources sector and the real estate sector, with many of its banking and finance deals found in these sectors. For instance, it is advising BNP Paribas, SG and SMBC on a bridge acquisition financing for the acquisition of interests in two power projects in the Philippines by Kepco. Partners Toshi Arai and Joseph Kim are key contacts while Josh Isenberg brings his real estate expertise to the team.

Paul Hastings has had a number of key lawyer departures in recent years, the latest one being Jun Usami’s move to White & Case in December 2010. The firm, however, maintains the highest level of services and clients fully trust a team that is led by Toshi Arai. “We would not have been able to do this without them,” says one client, who instructed the firm on a pioneering matter. “Paul Hastings’ advice was invaluable in helping us understand the pros and cons of the transaction.” A deal highlight this last year saw the firm advise Kobe Steel on its US$400 million joint venture with United States Steel Corporation.

Paul Hastings traditionally has a solid reputation in the real estate sector. However, the firm has suffered some recent departures, including the move of Ayako Kawano to White & Case, which may have caused some instability to a team that is headed up by Joshua Isenberg. Nonetheless, the firm still has its fair share of work. For example, long term client Osaka-based Sekisui House, the largest home builder in Japan, has been working with Isenberg on a range of joint ventures and acquisitions overseas, especially in the US.

The energy and natural resources group led by Joseph Kim at Paul Hastings is often found on deals that have a Korean element. It twice advised Korea East-West Power in the acquisitions of Marubeni Sustainable Energy and Jamaica Public Service in September 2010 and April 2011 respectively. This demonstrates the firm’s geographical coverage and its ability to represent Asian clients in cross-border transactions.