CHINA: An Introduction to Commercial Dispute Resolution: The Bar

Background

2024 was an exciting year in the area of commercial dispute resolution, encapsulating the development of existing rules and regulatory reforms to enhance the sphere of commercial relationships and trade in Hong Kong and the Greater China Region. While fostering local growth in businesses, slow but steady efforts to build ties with commercial entities internationally have prompted increased activity in the sphere of trade and commercial dispute resolution.

Economy

Hong Kong's economy has shown signs of recovery in 2024 – bolstered by a rebound in tourism, a robust financial sector, and new government initiatives. The Hong Kong labour market has remained resilient, and inflation rate has remained moderate within the 0.8-1.2% range for most of the year. IPO and commercial activity have also seen an uptick over the course of 2024, as exemplified by Midea’s recent listing in Hong Kong, raising about HKD4 billion.

That said, there remains room for growth. Commercial real estate investment volume for the first nine months in 2024 was almost HKD34 billion, which is the second-lowest level since 2008 over the same period. More than half of the 2024 figure represents distressed assets which were sold either by overly leveraged borrowers or banks.

China’s GDP also grew 4.8% year-over-year in the first three quarters of 2024. The government has introduced various policy incentives in the fiscal and financial sectors, in order to support consumption, real estate and capital markets. Consequently, the consultancy firm KPMG is expecting China’s economy to meet its growth target in 2024. Despite international trade disruptions and imbalances, China’s economy remains to be on track and is expected to continue growing in 2025.

Three Key Developments

There are three key developments which are likely to play a role in positively impacting commercial dispute resolution in Hong Kong and the Greater China Region in 2024, including both new initiatives and major milestone developments on existing projects and plans.

New HKIAC Arbitration Rules

On 3 May 2024, the Hong Kong International Arbitration Centre (HKIAC) announced its new Administered Arbitration Rules (the “Rules”) which came into effect on 1 June 2024. The amended Rules aim to enhance efficiency and flexibility, while reducing the costs involved in arbitrations generally.

Of particular note is the increased efficiency of rules relating to the commencement of a single arbitration pursuant to multiple contracts — these rules concern the designation of arbitrators, a change to the criteria of determining the costs of the arbitration, and relaxed criteria for granting an expedited procedure.

Further, under the Arrangement Concerning Mutual Assistance in Court-Ordered Interim Measures in Aid of Arbitral Proceedings by the Courts of the Mainland and the Hong Kong Special Administrative Region (the “Arrangement”), attempts to obtain interim relief measures from the Mainland courts have often been successful. As of 10 December 2024, HKIAC has issued acceptance letters for 143 applications where assets with a total value of RMB34 billion were requested to be preserved. Such increased cooperation between the Hong Kong and Mainland Courts could also be attributed to newly implemented legislative frameworks, including the implementation of the Mainland Judgments in Civil and Commercial Matters (Reciprocal Enforcement) Ordinance (Cap. 645) which recently came into force – this legislation allows for the reciprocal enforcement of Hong Kong and Mainland judgments for civil and commercial matters.

Businesses which opt for the Rules as the basis of their arbitration agreement can reap benefits which span across Hong Kong and the Greater China Region. Not only is the reduction in costs a major benefit, the continued possibility of efficiently disposing of matters through single arbitrations and expedited provisions makes clear the advantages of the Rules. Further, the generally pro-arbitration attitude adopted by the Hong Kong courts is also attractive to parties who intended to choose Hong Kong as their seat for international arbitrations. In 2024, especially with the new Rules, Hong Kong remains a leading choice of seat for international arbitrations.

Major milestones in the Belt & Road Initiative

The 9th Belt and Road Summit (the “Summit”) took place in Hong Kong this past September, marking a resurgence of business activity as the post-Covid economic climate gains momentum.

Notably, the Summit in 2024 featured over 800 one-on-one business matching meetings for more than 280 projects, in exploring emerging markets to explore new development opportunities in markets under the Belt and Road Initiative (the “Initiative”). A record 25 memorandum of understandings were signed during the Summit, and these included 4 between governments, and 21 between businesses, involving government bodies and companies from Indonesia, Malaysia, Vietnam, Bahrain, Kuwait, and Kazakhstan. Further, a highlight of the Summit included discussions of Hong Kong’s role in facilitating green development under the Initiative.

The positive outlook of the Summit was also shared by attendees. For instance, it was emphasised by Cahyo R Muzhar, the director general of legal administrative affairs of Indonesia’s Ministry of Law and Human Rights, that Hong Kong’s dispute settlement mechanism provides a model which is worth exploring in Indonesia, where it seeks to develop its family-office and social-enterprise areas. This is consistent with Hong Kong’s move to encourage family offices to thrive in this jurisdiction, by ensuring security in dispute resolution procedures and mechanisms as well as the provision of tax concessions.

The Chinese deputy international trade representative, Li Yongjie, emphasised in her opening remarks that the Ministry of Commerce would support and expand the space for Hong Kong’s participation in joint developments under the Initiative, further connecting economies across Asia, Europe, Africa and South America. There was also emphasis on Hong Kong receiving support from Beijing to secure more free trade and investment protection agreements with other jurisdiction, and to enter the Regional Comprehensive Economic Partnership (RCEP) “as soon as possible”.

The conclusion of this Summit poses significant implications for businesses. First, with the Central Government’s support of Hong Kong and recognition of its role in fostering cross-border business relationships, there is much opportunity to be explored in fostering relationships with markets under the Initiative, particularly sectors which involve energy, transportation, urban development, innovation, technology and logistics infrastructure, which formed the majority of the businesses involved in negotiations. Second and importantly, the move to ensuring effective commercial dispute resolution mechanisms in Hong Kong would encourage businesses to conclude agreements with Hong Kong as its governing law and jurisdiction, in recognition of the legal protections and mechanisms readily in place. Hong Kong’s fundamental and recognised role in the Initiative would encourage disputes to be brought in this jurisdiction, which again bodes well for the development of commercial dispute resolution in Hong Kong.

Cryptocurrencies and compliance

The regulation of virtual asset trading platforms, as well as the development of cryptocurrencies and compliance policies will undoubtedly be the focal point of conversations for the next few years. In this regard, Hong Kong aims to instill confidence and boost the trading of cryptocurrencies by acting an international platform through the continual implementation of new legislation and regulations.

The Stablecoins Bill was published on 6 December 2024, which sets out a licencing framework for fiat-referenced stablecoin issuers, and grants the Hong Kong Monetary Authority (HKMA) necessary powers of investigation, supervision and enforcement. The HKMA further announced a list of participants of the stablecoin issuer sandbox, where the listed institutions can demonstrate genuine interest in developing a stablecoin issuance business in Hong Kong under the arrangement, which would be conducted within a risk-controlled environment. Further, virtual asset ETFs have also been listed on the Hong Kong Stock Exchange throughout 2024, following the Securities and Futures Commission’s expression of willingness to authorise funds with virtual asset exposure.

Hong Kong courts have also commented and provided guidance which arose from cryptocurrency disputes. The Court of First Instance had previously in Re Gatecoin Ltd, confirmed that cryptocurrency is in fact categorised as “property” which can be held on trust, and recently the courts have also recognised a need to mandate the disclosure of financial records and books related to a decentralised autonomous organisation (DAO) finance platform in the cryptocurrency industry in the case of Mantra Dao Inc.

New moves have also come from China’s Administration of Foreign Exchange, which released new rules requiring banks to flag risky trades, including those involving cryptocurrencies. Banks are required to put in place risk-control measures that cover those entities and restrict provision of certain services to them. The rules focus on avoiding trade in cryptocurrencies to evade its forex regulations. This notwithstanding, there remains hope that the layered vetting of cryptocurrencies and/or virtual assets by Hong Kong authorities would provide a layer of safeguards to boost the confidence of trading of cryptocurrencies in the Mainland.

A growth in legal professionals in the area of digital assets and compliance is expected to materialise, and a positive outlook for businesses involved in the cryptocurrency industry remains.

Conclusion

Despite the relatively slow progress, Hong Kong and the Greater China Region are gradually but definitively making their way back to pre-pandemic commercial activity. Charting into both familiar and new territories, the outlook for commercial parties and the legal sector remains optimistic.

2025大中华区法律指南：商事争议解决领域概览（香港大律师篇）

引言

2024年对商事争议解决领域而言是振奋人心的一年，体现为既有规则的发展与监管改革，旨在强化香港与大中华地区的商业联系与贸易往来。这些改革不仅促进本地企业的增长与发展，亦借由一系列渐进但稳健的举措，增进香港与国际商业实体之间的联系，为贸易和商事争议解决领域注入新的活力。

经济情况

2024年，得益于旅游业的反弹、金融业的稳健表现以及新的政府举措的推动，香港经济逐渐展现出复苏的迹象。香港劳动力市场保持弹性，通胀率保持温和态势，全年大部分时间维持在0.8%至1.2%的区间。首次公开募股（IPO）和商业活动在2024年亦呈现增长趋势，例如，美的集团近期在香港成功上市，募集资金约40亿港元。

尽管如此，香港经济仍存在增长空间。2024年前9个月，香港商业地产投资额约达340亿港元，系2008年以来同期的次低水平。在2024年的数据中，超过一半的数据来自于过度负债的借款人或银行出售的不良资产。

2024年前三季度，中国国内生产总值（GDP）亦同比增长4.8%。为支撑消费、房地产和资本市场，政府在财政和金融领域出台了多项政策激励措施。在此背景下，咨询公司毕马威（KPMG）预计中国将达成其2024年度的经济增长预期目标。尽管国际贸易受到干扰并出现失衡，中国经济仍保持在正常发展的轨道上，并有望在2025年持续呈现增长态势。

主要发展

如下三项重要发展有望在2025年对香港和大中华地区的商事争议解决领域产生积极正面的影响，其中包括若干新举措，以及现有项目及计划的重要发展。

香港国际仲裁中心（HKIAC）发布新的仲裁规则

2024年5月3日，香港国际仲裁中心（HKIAC）正式发布新版《机构仲裁规则》（下称“《规则》”），该《规则》自2024年6月1日起生效。此次修订的《规则》旨在提升仲裁程序的效率和灵活性，同时广泛降低仲裁成本。

特别值得注意的是，关于根据多份合同启动单一仲裁程序的规则效率得以提升——这些规则涉及仲裁员的指定、仲裁费用确定标准的调整以及对简易程序适用标准的放宽。

此外，香港根据《关于内地与香港特别行政区法院就仲裁程序相互协助保全的安排》向内地法院提交的临时救济措施申请通常能够获得成功。截至2024年12月10日，香港国际仲裁中心已就143宗申请出具受理函，要求保全的资产总值达340亿元人民币。新实施的立法框架令香港与内地法院之间的合作日益加强，包括最近生效的《内地民商事判决（相互强制执行）条例》（第645章）——该条例允许香港与内地相互强制执行民商事判决。

选择《规则》作为仲裁协议依据的企业可以在香港和大中华地区获得诸多益处。其中，成本缩减无疑是主要的优势，而能够持续通过单一仲裁和简易程序高效处理案件也是适用《规则》的显著优势之一。此外，香港法院普遍支持仲裁的态度亦吸引了众多倾向选择香港作为国际仲裁地的当事人。2024年，尤其是在香港国际仲裁中心发布新修订的《规则》后，香港在国际仲裁中作为仲裁地的地位更加稳固。

“一带一路”的重大里程碑

2024年9月，第九届“一带一路”高峰论坛在香港举行，这标志着随着疫情后经济形势的回暖，商业活动逐步复苏。

值得关注的是，本次论坛聚焦新兴市场，致力发掘“一带一路”框架下市场发展的新机遇，为超过280个投资项目举办了800余场一对一项目对接会。不仅如此，本次论坛共达成25份合作备忘录，这一数字创历届新高，其中4份为政府合作，21份为商贸合作，涵盖印尼、马来西亚、越南、巴林、科威特以及哈萨克斯坦等地的政府机构及企业。此外，论坛的一大亮点在于深入探讨香港在“一带一路”倡议中推动绿色经济发展的角色与定位。

本次论坛对未来发展的积极展望得到了与会代表们的广泛认可。印尼司法人权部法律行政事务司司长Cahyo R Muzhar先生强调，香港的争议解决机制为印尼提供了值得参考的范例，尤其在印尼寻求发展家族办公室和社会企业领域之际。这与香港为促进家族办公室在其司法管辖区蓬勃发展所采取的举措是一致的，即确保争议解决程序和机制的安全可靠以及提供税收优惠。

商务部国际贸易谈判副代表李咏箑女士在开幕致辞中表示，商务部将支持并拓展香港参与共建“一带一路”的空间，进一步连接亚洲、欧洲、非洲和南美洲的经济体。她亦强调，商务部将加快支持香港同其他司法管辖区签署更多自由贸易协定和投资保护协定，“尽早”加入《区域全面经济伙伴关系协定》（RCEP）。

这次高峰论坛的成果对商界影响深远。首先，中央政府对香港的支持及其对香港在推动跨境商贸合作方面角色与定位的认可，为香港在“一带一路”框架下深化与其他市场的关系开辟了广阔的空间，尤其是在能源、运输、城市发展、创新、科技和物流基础设施等行业，而参与本次论坛的大部分企业正是来自这些行业。其次，重点确保香港建立高效的商事争议解决机制，这一举措将鼓励企业鉴于香港具备完善的法律保护和机制，缔结以香港法为准据法和指定香港为司法管辖区的协议。香港在“一带一路”倡议中的核心作用得到认可，将促使更多争议选择在香港解决，这无疑预示着香港商事争议解决领域发展的蓬勃态势。

加密货币与合规

虚拟资产交易平台的监管、加密货币的发展及配套合规政策的完善，无疑将成为未来数年间的焦点话题。在此背景下，香港致力于通过持续颁布新的法律法规，打造一个能够增强加密货币交易信心并推动其发展的国际平台。

2024年12月6日，香港正式公布《稳定币条例草案》，旨在订立法币挂钩稳定币发行人的发牌制度，并授予香港金融管理局（“金管局”）必要的调查、监督和执法权力。金管局还进一步公布了稳定币发行人“沙盒”参与者名单，名单内机构均展示了在香港发展稳定币发行业务的真实意愿，并表示在“沙盒”下的拟议运作将在风险可控的情况下进行。此外，在香港证券及期货事务监察委员会表示愿意认可基金投资虚拟资产后，虚拟资产 ETF已于2024年在香港证券交易所正式上市。

香港法院同样在关于加密货币争议的案件中提供了重要指导和见解。香港高等法院原讼法庭此前在Re Gatecoin Ltd一案中确认，加密货币实际上被归类为“财产”，可以成为信托的标的。不仅如此，香港法院在Mantra Dao Inc一案中也认定，有必要强制披露加密货币行业去中心化自治组织（DAO）金融平台相关的财务记录和账簿。

与此同时，中国外汇管理局（“外管局”）也在加密货币交易领域采取了新举措。外管局出台的新规定明确要求银行对包括加密货币交易在内的风险交易进行标记，并要求银行制定覆盖这些实体的风险控制措施，以及限制向该等实体提供部分服务。这些新规定的核心目的在于防止通过加密货币交易规避国家的外汇管制。尽管如此，市场仍希望香港当局能够对加密货币和/或虚拟资产实施多层次审查，以此为内地加密货币交易增设一层保障，进而增强市场信心。

在此背景下，数字资产和合规领域的法律专业人员数量预计将迎来增长，加密货币行业的企业前景依然向好。

结论

尽管进展相对缓慢，香港及大中华地区正逐渐稳步恢复到疫情前的商业活动水平。无论是拓展熟悉的市场，还是探索新兴领域的机遇，商业市场和法律行业的前景依然乐观。