While PRC firms, Korean firms and Japanese firms have for years successfully recruited US biglaw associates, in ’09 such recruitment was more successful than usual. There are two reasons for this trend: i) most top US firms in Asia were on hiring freeze throughout ’09, making it extremely difficult for even the most impressive US associates to lateral to a US practice in Asia in ’09 (such lateral moves did happen, most with Kinney involved, but not in great number, relative to ’06, ’07, ’08 and ‘10); and ii) there has been a feeling in the market in the past couple of years that some local firms in Asia, especially PRC firms, are catching up to US practices there.

We know a number of US associates who made the move from top 10 US firms to PRC firms in ’09 (some with Kinney's help). We also know a handful of US associates from top tier US firms that moved to Korean and Japanese local firms in ’09. This type of lateral move has been a good one for those looking for more of an entrepreneurial role early on in their career, especially if they have very strong personal connections at banks and other relevant entities in the target country. However, this type of move has been a bad one for those who are focused on keeping their technical skill set at a top US practice level of sharpness (in order to open up career doors now and in the future).

A great draw of US biglaw associates to Hong Kong is the lucrative and somewhat illogical expat / cola allowances. Even though the cost of living in Hong Kong is not much different than New York (housing is a bit higher in HK), it is common to receive an expat / cola allowance of well over $60,000 USD.

Last year most in the Hong Kong market expected the lucrative US associate expat / cola allowances to lower dramatically, due to the global recession (which did greatly reduce deal flow in HK / China from late ’08 to mid ’09) and with many firms on global hiring freeze at the time. However, in reality, the expat / cola allowances at the more competitive US and UK firms in HK were never really in danger of dropping much, even during the very slow lateral biglaw hiring period in HK from December ’08 until October ’09.

Since 2008, in response to the financial crisis, the Chinese renminbi (RMB) has been pegged at about 6.82 to the US dollar. On the evening of Saturday, June 19th, the Chinese government announced a return to pre-crisis monetary policies which allowed for greater flexibility in the value of the RMB against the dollar. Monday morning saw proponents of immediate revaluation wishing for a little less conversation and a little more action as the Chinese government left Monday morning exchange rates unchanged from Friday’s value of RMB6.8275. China will now determine its exchange rate with reference to a basket of currencies, but the authorities have not given any hints as to what the new currency regime will be.

While the RMB initially surged in forwards markets as traders anticipated future appreciation (as much as 3% in the coming year), the currency actually inched downward on Tuesday, followed by a tiny uptick on Wednesday morning. Three days into the unpegged system and it is clear that aside from the yuan’s daily dance, Beijing is primarily interested in keeping its currency valuations relatively stable and that investors’ hopes for a one-way upward appreciation were wishful thinking.

In 2009, investment guru Jim Rogers quipped, “If you were smart in 1807 you moved to London, if you were smart in 1907 you moved to New York City, and if you are smart in 2007 you move to Asia.” Asia’s fertile investment potential tends to attract the entrepreneurial, motivated, risk-taking and driven sort – and Mr. Rogers was no exception. Wanting to be in the thick of the economic action, Mr. Rogers decided it was time to find a new neighborhood. He sold his $16M NYC mansion and moved to Singapore in 2007.

He wasn’t the only one. The strength of the Asian economies (not to mention generous expat packages) turned the heads of many New York associates toward Asia. The prospect of working with emerging superpowers like China on one transaction, while breaking ground in a true emerging market like Cambodia on another made my New York deal sheet look like a sensible black dress at Bryan Park’s fashion week. Go east, girlfriend, and grow up with a new country!