In recent years, there have been concerns over challenges facing the rule of law in Hong Kong. Some critics have questioned Hong Kong's status as a global deal-making and dispute resolution hub. In this article, we have put forward a number of considerations to dispel such misconceptions and explain why Hong Kong remains an ideal place to resolve commercial disputes. Hong Kong has a rich common law heritage and a unique English-Chinese bilingual legal system. It is an ideal hub to resolve international disputes for foreign parties conducting business in or with parties based in Hong Kong and Mainland China. This article touches on two key points of a dispute (commencement and enforcement) in showing why Hong Kong maintains its status as the frontrunner for where to resolve commercial disputes, in particular those with Chinese elements.
Commencing Proceedings in Hong Kong Litigation Hong Kong has maintained its common law system after its handover from the United Kingdom to China and is the only Chinese city with a common law jurisdiction. This provides international parties with the familiarity of a trusted legal system underpinned by two key touchstones of the common law system - judicial independence and certainty. A party wishing to commence litigation in Hong Kong has to first identify the appropriate court. This would be based on the nature and amount of the claim. For commercial disputes, it would often be the District Court or the Court of First Instance of the High Court in which a party would commence an action. Apart from a nominal filing fee for registering the “originating process” (setting out details of the claims and the amount of compensation being sought) with the court, the benefit for a litigant in Hong Kong is that no upfront court fees are required. This is in contrast to other jurisdictions, where courts would require payment of significant court fees proportional to the claim amount. 25
