More Chinese firms turning to Hong Kong for arbitration

An increasing number of mainland firms have been coming to Hong Kong to seek arbitration for their commercial disputes.

Lawyers expect the trend to continue, with companies likely to come here the most with marine, construction and commercial disputes.

"An increasing number of Chinese companies are coming to Hong Kong for arbitration," said James Rogers, a litigation and dispute resolution lawyer with international law firm Norton Rose Fulbright.

The city is an attractive place for mainland companies for arbitration. It is geographically close and culturally accessible. There was also a large number of international and local law firms with Chinese-speaking practitioners experienced in international arbitration and well placed to assist Chinese parties, Rogers said.

"It is much easier for witnesses and company executives who are based in [mainland] China, or elsewhere in Asia, to travel to Hong Kong for arbitration hearings rather than to London or other traditional arbitration centres in Europe," he said.

Under the New York Convention, to which Hong Kong is a party, an arbitration awarded here is valid in more than 140 countries, including mainland China.

This is why companies with no connection with Hong Kong are increasingly resolving their disputes here. "They know that they will be able to turn their award into money at the end of the day," Rogers said.