Editorial | New pact strengthens arbitration role of Hong Kong

A new pact with the mainland has enhanced Hong Kong’s reputation as one of the few places in the region that can offer an assurance that legal disputes will be settled fairly. The government has reached an agreement with the People’s Supreme Court of China for interim protection of assets and evidence on the mainland involved in arbitration cases heard in the city.

Hong Kong is the first jurisdiction to have that arrangement with the mainland. Secretary for Justice Teresa Cheng Yeuk-wah, herself a specialist in arbitration in international commercial or investment disputes before joining the government, calls it a game-changer for the city’s arbitration industry.

“This gives [the industry] a great advantage,” she said rightly, given that it is already a premier arbitration jurisdiction with up-to-date laws, an independent judiciary and a large pool of talent.

Recognition and respect for a legal system from the international community is important when it comes to international trade and commercial deals. Investors and businesspeople want their interests protected by a legal system they can believe in.

Moreover, promoting Hong Kong as an arbitration centre is playing to the city’s strengths. It is likely to be in huge demand because China’s economy is now integrating more closely with the rest of the world.