reports.

The financial crisis in the Asian markets could mean more opportunities for firms like Bermuda's Appleby, Spurling & Kempe in Hong Kong.

Major difficulties have been experienced in Indonesia, Thailand, Malaysia and Japan -- markets the law firm looked to for business expansion from its Hong Kong base.

"Of course,'' said AS&K managing partner Dianna Kempe, "there has been a dramatic change in the business climate in Hong Kong. But we've not had to downsize our operations there.

"Japan is still suffering somewhat, but we do plan to do a number of things there later this year. We are using the slowdown as an opportunity to market in the region. That is the benefit of decreased business activity. We will use the time to conduct more marketing.

"But for Hong Kong, the coincidental timing of the political changeover followed by the recession there is regrettable. It is sad for Hong Kong that the two should occur virtually at the same time.

"But we are there for the long term. You can't just duck out when things go bad. You have to remain, show support for the jurisdiction, look after your existing clients and ride out the storm.

"We are holding our heads above water and there is no reason to affect cutbacks. But of course we have a contingency plan if things get too drastic.

That's just prudent business.'' The law firm's dozen people in the Hong Kong office is comprised of three attorneys and three corporate administrators backed by half a dozen management support and secretarial staff.

AS&K Hong Kong partner Frances Woo said some Bermuda companies listed on the stock exchanges of Hong Kong, Australia and Singapore are being forced to adjust to the changing landscape by restructuring.

She said: "You are seeing quite a bit of mergers & acquisition activity and certain of these companies are also privatising. To that extent Bermuda lawyers are quite intimately involved.'' The law firm's business is growing, expanding from Hong Kong to provide services in other parts of the region, into Taiwan, China, Australia and Japan, as well as Indonesia and Thailand.

"That's how we're growing. That's where our new business is coming from. Our firm can no longer just sit in Bermuda, waiting for business to come to us. We are committed to being international, so other offices will always be under consideration.'' Some possibly unwelcome business came AS&K's way recently after the collapse of investment bank Peregrine Investments Holdings, Ltd., which was pulled down by bad Indonesian investments on the eve of a later aborted buy out by Bermuda-based Centre Solutions.

Ms Woo, who has been with AS&K for five years, said: "It is a Bermuda company and we are quite involved in that, as well. Business, for us, is happening in ebbs and flows.

"Before, when the economy was good, we were doing IPOs, capital raising on the various markets, joint ventures, and the like.

"We are still seeing a bit of that, but because of the difficulties on the Hang Seng index and in Hong Kong, people are jockeying around and trying to restructure and reposition themselves for the next upturn.'' She said the law firm has been forced to adapt to the changing markets. There has been no focusing on insolvency work or restructuring, although more can be expected in the future. She sees a lot of companies in the region standing on the sidelines, adopting a wait-and-see attitude.

"There's been a lot of enquiries, but many may not be forging ahead. To that extent we have been impacted, like other businesses.

"We're primarily there to service our Bermuda companies. They still need support and Bermuda legal advice. Originally, we were looking at more things in terms of listings and the corporate finance side. Now we are finding more consulting requests, requiring more innovation and creativity from us.'' Ms Woo speculated that the Asian market downturn -- the first in over a decade -- will make companies in the region leaner and more innovative.

"Before, when the economy was good, we were doing IPOs, capital raising on the various markets, joint ventures, and the like.

"We are still seeing a bit of that, but because of the difficulties on the Hang Seng index and in Hong Kong, people are jockeying around and trying to restructure and reposition themselves for the next upturn.''