Key Takeaways: Judgement Enforcement Between Hong Kong SAR and China

Our Global Insights webinar series, led by Business Development Consultant for Asia, Maria McDermott, is an excellent resource for Jersey professionals to learn about the financial landscape in mainland China and Hong Kong SAR.

3 May 2024

In our first Global Insights webinar of the year, Mohammed Talib, Partner at Pinsent Masons, gave an overview of the latest developments in cross-border legal frameworks and the implications of the new Hong Kong SAR ordinance that was effective from 29 January 2024.

1. Ease of enforcing judgements across the border

It has become easier to enforce civil and commercial judgements between Hong Kong SAR and mainland China.
This facilitates smoother cross-border transactions and legal proceedings, reducing obstacles for businesses operating in both regions.

2. Broad scope of application

There is now a broad scope of application, allowing for various types of matters to be determined in either Hong Kong SAR or mainland China and brought across.
This flexibility provides parties with more options for resolving disputes and enforcing judgements effectively.

3. Pro-enforcement approach

Both Hong Kong SAR and mainland China courts will see the new legislation as a positive to avoiding the challenges historically posed by the legal system.
Expectations are for interpretations and applications to be pro-enforcement, providing confidence to parties involved in litigation.

4. Increased access to assets in mainland China

Parties, especially those with asymmetric dispute resolution clauses favouring Hong Kong SAR, now have a better chance of accessing mainland assets and property for enforcement purposes.
This enhances the enforceability of judgments and reduces the risk for parties seeking redress.

5. Confidence in enforcement mechanisms

Mainland parties are likely to shift from a previously indifferent stance to a more confident and ready-to-enforce mindset.
The mechanism is expected to instil confidence in the enforceability of judgements, benefiting parties opting for Hong Kong SAR as a dispute resolution hub.

Topics

Asia