HK to strive for position as APAC dispute resolution hub: Justice chief

Hong Kong's Secretary for Justice, Teresa Cheng, says in a blog post today (April 11) that HK as the only common law jurisdiction in China, would continue to capitalize on this unique advantage continue to serve as an international legal hub for deal-making and dispute resolution services.

She says that the business opportunities arising from the development of the Greater Bay Area have brought out the importance of protecting intellectual property rights (IPR) and handling related disputes.

Because of the confidential technology and know-how involved in IP disputes, parties often prefer arbitration to litigation when dealing with this type of dispute. The Hong Kong Arbitration Ordinance stipulates that IPR disputes can be resolved by arbitration, which is an advantage for HK, Cheng says.

She also notes that China, as the world's second-largest economy, offers enormous business opportunities. The availability of conservatory measures also plays an important role in the choice of venue for arbitration.

Cheng points out that HK has a unique advantage under "one country, two systems" and has signed up for conservatory measures with the Mainland for arbitration proceedings, which allows parties to arbitration proceedings administered by six designated arbitral institutions to apply for preservation in the Mainland courts when Hong Kong is chosen as the seat of arbitration. HK is the only jurisdiction outside the Mainland that allows such arrangements, she adds.

Cheng concludes that as the world's economic weight is shifting towards Asia, the increase in transactions will inevitably lead to more disputes, which should ideally be resolved in the region where the transactions are taking place. 

"I believe that HK's continued development as an international legal, deal-making and dispute resolution services hub in the Asia Pacific region will create greater synergies and facilitate more transactions in the city," she says.