E&Y to launch legal services in China

Online sources reveal that accounting firm Ernst & Young (EY) is in the process of launching a legal services unit in China through the acquisition of Shanghai-based Chen & Co. The move will be seen as significant for marking the global accoutancy firms first reach into China’s vast legal services market, a route that remains closed  to international law firms. The ‘big four’ accountancy firms have enjoyed a dominant position in China’s accounting and auditing industry for decades without many restrictions.  Accountancy giants, EY, KPMG, PWC and Deloitte, have expanded extensively in the country by acquiring Chinese accounting firms. By expanding into legal advisory work they aim to build on the amount of work they are already doing for top Chinese companies.  It is understood that under the deal Chen & Co will remain a licensed Chinese firm but will become a member of the EY global network.