“Law Firms Eye Global Market Turmoil, China Plunge”
A plunge in stock prices in China, with its nerve-rattling aftershocks in the U.S., may prompt law firms to further scrutinize their strategy in China.
The Shanghai Composite Index tumbled 8.5 percent on Monday—its greatest one-day decline since 2007. The index has dropped 38 percent since mid-June, and when China unexpectedly devalued its currency earlier this month, the move sparked further concerns about the extent of the country’s economic slowdown.
It’s not only firms with China-based practices that are eyeing the markets there. Emily Parker, managing partner of Dallas-based Thompson & Knight, which has no offices in Asia, said concern about demand in China is probably affecting oil prices, which has a more direct impact on Texas firms. Still, she cautioned that it’s too early to say if the market upset will affect the firm’s business or the volume of capital markets work.