vLex Hong Kong

  • The importance of getting your notices right

    Where notice requirements are clear and unambiguous, those required to give notices should expect them to be strictly enforced. In the recent Court of Appeal decision Maeda Kensetsu Kogyo Kabushiki Kaisha v. Bauer Hong Kong Ltd. [2020] 5 HKLRD 328, a claim that was otherwise valid was disallowed by the court because the subcontractor's notice (which was submitted in time) failed to state the precise contractual provision being relied upon. Please see full Publication below for more information. (See Article)

    Jan 14, 2021 7:32 AM

  • New SFC requirements on electronic data storage

    In response to the growing popularity in the use of external data storage for record-keeping, on 31 October 2019, the Hong Kong Securities and Futures Commission (SFC) issued a circular to licensed corporations (LCs) on the use of external electronic data storage providers (See Article)

    Jan 13, 2021 7:32 AM

  • Attempt to resist enforcement of a PRC arbitral award in Hong Kong, by arguing that the arbitration agreement was tainted by forgery

    Shenzhen Honeycomb System Co Ltd v HCT Technologies (Hong Kong) Co Limited (HCCT 20/2019, [2020] HKCFI 3175, 31 December 2020) confirms the Hong Kong court’s pro-arbitration and pro-enforcement approach. The case involved how the Hong Kong Court of First Instance (the “Court”) approached an attempt to resist enforcement of an arbitral award obtained in Mainland China on the basis of the award debtor’s claim of forgery of the underlying agreement. (See Article)

    Jan 11, 2021 9:32 AM

  • Hong Kong court refuses to uphold an arbitral award for enforcement on grounds of excess of authority and denial of a fair hearing

    In X v Y (HCCT 62/2018) [2020] HKCFI 2782 (Date of Decision: 5 November 2020), the Hong Kong Court of First Instance (the Court) set aside an order to enforce an arbitration award on the basis (i) that the tribunal’s findings were beyond the scope of the arbitration clause and the parties submission to arbitration, and (ii) that the respondent in the arbitration had not been given a reasonable opportunity to present its case and to meet the case of the claimant in the arbitration. In her judgment, Mimmie Chan J explained the principles for determining the proper scope of the tribunal’s jurisdiction where a dispute involves a series of connected agreements that are subject to different dispute resolution clauses. (See Article)

    Jan 11, 2021 7:32 AM

  • Key Regulatory Developments in Hong Kong and Singapore: December 2020

    Regulators consult on an investor identification regime and outsourcing requirements, and issue guidance on electronic storage of regulatory records and environmental risk management - This blog post summarises key regulatory developments in Hong Kong and Singapore during December 2020, including: ..The SFC’s consultation on an investor identification regime for the securities market ..The SFC’s additional guidance on external electronic data storage ..The MAS’ response to feedback on the proposed guidelines on environmental risk management ..The MAS’ consultation on requirements in relation to the management of outsourced services. (See Article)

    Jan 8, 2021 7:32 AM

  • The relationship between cheques (and other bills of exchange) and arbitration clauses

    In T v W (HCA 366/2020, [2020] HKCFI 2918), the Hong Kong Court of First Instance considered the interesting question of whether a claim made on a dishonoured cheque was caught by and fell within the application of an arbitration clause in the underlying loan agreement in respect of which the cheque was issued. The Loan Agreement and the Cheque - On 22 March 2019, the Plaintiff (as the lender) and the Defendant (as the borrower) entered into an agreement for a loan of HK$5 million with monthly interest of 2.5% (the “Loan Agreement”). (See Article)

    Jan 1, 2021 7:32 AM

  • HK Court reluctant to grant EOT for setting aside an arbitral award

    The recent case of A v D (HCCT 52/2020) reinforces the pro-arbitration and pro-enforcement approach of Hong Kong courts. Under Article 34 (3) of the Model Law (adopted by section 81 of the Arbitration Ordinance (“Ordinance”)), an application for setting aside an arbitral award may not be made three months after the applicant received the award. (See Article)

    Dec 31, 2020 9:32 AM

  • Supplemental Arrangement Concerning Mutual Enforcement of Arbitral Awards between the Mainland and Hong Kong

    On 27 November 2020, the Department of Justice of Hong Kong and the Supreme People’s Court of China signed the Supplemental Arrangement Concerning Mutual Enforcement of Arbitral Awards between the Mainland and the Hong Kong Special Administrative Region (the Supplemental Arrangement). The Supplemental Agreement amends and clarifies the Arrangement Concerning Mutual Enforcement of Arbitral Awards between the Mainland and the HKSAR (the Existing Arrangement) which was signed back in 1999. (See Article)

    Dec 31, 2020 7:32 AM

  • Forecasting clearer skies: SFC clarifies approach to external electronic and cloud storage

    The use of electronic data storage as a means to store information and documents is increasingly prevalent – generally and amongst licensed corporations. However, regulatory requirements in Hong Kong around keeping of records have historically been restrictive. Whilst respecting the legitimate need for firms to be able to store records in an efficient manner, the Hong Kong regulators have responded on a number of fronts expressing their need and concern that they have continued power to access such records as necessary to fulfil their regulatory obligations, irrespective of where the records are held. Please see full Publication below for more information. (See Article)

    Dec 24, 2020 7:32 PM

  • RCEP – bigger, but is it better? Taking Stock of Asia's new free trade agreement

    After eight years of negotiation, the Regional Comprehensive Economic Partnership on Trade (RCEP), the world's largest regional trade agreement, was signed in an online ceremony on 15 November 2020. The trade deal lowers tariffs, expands services trade, harmonizes rules of origin, and promotes regional trade. Please see full Publication below for more information. (See Article)

    Dec 23, 2020 7:32 AM

  • Gunning for success – Hong Kong Court of Final Appeal rules on fees in financial introductions

    It is not uncommon for companies exploring expansion or other ways of raising capital to engage financial advisers to provide a range of consultancy services, including the introduction of potential investors or deals of interest. Please see full Publication below for more information. (See Article)

    Dec 22, 2020 7:32 AM

  • Taking Stock of Hong Kong as an Arbitral Seat

    Counsel and arbitrators give their take on why Hong Kong remains a world class arbitral seat of choice. Key Points: ..Hong Kong courts continue to be independent and take a pro-arbitration and pro-enforcement approach that facilitates the arbitral process. ..HKIAC Arbitration Rules are innovative and progressive, allowing for cost-effective and efficient resolution of disputes, particularly in situations involving multiple parties and/or multiple contracts. ..HKIAC provides a diverse pool of international arbitrators and world-class services that help ensure a smooth arbitration process. ..Hong Kong benefits from its unique status as both a Special Administrative Region of Chin (See Article)

    Dec 22, 2020 7:32 AM

  • 2020 – an unprecedented year for Thai competition law

    2020 has been one of the most eventful and unprecedented years for competition law in Thailand. This year, four public hearings have taken place, three industry-specific regulations on unfair practices were issued, the dominance thresholds were amended, the authority has published a detailed merger control manual, and two pre-closing merger approvals were issued – with one landmark case leading to remedies. (See Article)

    Dec 22, 2020 7:32 AM

  • Updates on U.S. sanctions affecting parties in Hong Kong and China - December 2020

    Following our recent Client Alert published in October 2020 on the release of the Section 5(a) Report under the Hong Kong Autonomy Act of 2020 (“HKAA”), there have now been some further updates in relation to U.S. sanctions affecting parties in Hong Kong and China which we discuss below. (See Article)

    Dec 21, 2020 9:32 AM

  • Potential liability for contempt of court of signers of inaccurate statements of truth

    We all have had to arrange clients to sign the required “statement of truth” concerning the contents of pleadings in court proceedings. Some arbitrators are directing similar signed statements on statements of case and memoranda in arbitrations. (See Article)

    Dec 21, 2020 7:32 AM

  • Hong Kong’s Securities and Futures Commission (SFC) Enforcement Actions Trends and Tracker (UPDATED)

    Recent annual and quarterly reports published by Hong Kong’s Securities and Futures Commission (the SFC) highlight the SFC’s regulatory work for the period dated April 2019 to March 2020 (the 2019/2020 Period), and the period dated April 2020 to September 2020, respectively. Please see full Publication below for more information. (See Article)

    Dec 18, 2020 5:32 PM

  • Hong Kong: HKEX Proposes to Raise Main Board Profit Threshold

    Hong Kong Exchanges and Clearing Limited (the “HKEx”) on 27 November 2020 issued a consultation paper outlining its proposal to increase the profit requirement for listing of shares on the Main Board of HKEx (the “Proposed Profit Requirement”). (See Article)

    Dec 10, 2020 7:31 PM

  • Hong Kong and Mainland China sign supplemental arrangement concerning mutual enforcement of arbitral awards

    The Arrangement Concerning Mutual Enforcement of Arbitral Awards between the Mainland and the Hong Kong Special Administrative Region (the “Existing Arrangement”) was signed in June 1999 and came into effect in February 2000 (see our post of 29 May 2020). (See Article)

    Dec 10, 2020 9:32 AM

  • Hong Kong Stock Exchange Proposes to Increase the Main Board Profit Requirement

    The consultation paper proposes to increase the Main Board Profit Requirement by 150% or 200%. The Stock Exchange of Hong Kong Limited (the Exchange) has published a Consultation Paper on the Main Board Profit Requirement (the Consultation Paper) proposing to increase the profit requirement to align with the market capitalisation requirement for Main Board applicants. Since the introduction of the profit requirement in 1994, the Exchange has maintained the profit requirement despite amendment to other requirements such as the increase in market capitalisation requirement from HK$200 million to HK$500 million in 2018. When introduced in 1994, a new applicant was required to have a minimum a (See Article)

    Dec 10, 2020 9:32 AM

  • Hong Kong sees the first disqualification order under its Competition Ordinance

    Under the Competition Ordinance, the Hong Kong Competition Tribunal (“Tribunal”) may, on application by the Competition Commission (“Commission”), impose a disqualification order prohibiting a person from being a director, liquidator or provisional liquidator of a company, a receiver or manager of a company’s property, or taking part in the promotion, formation or management of a company. The disqualification order may be for a maximum period of 5 years (ss 101-103 ). (See Article)

    Dec 10, 2020 7:32 AM

  • Another first – Hong Kong court grants provisional liquidators permission to seek Mainland recognition

    In another groundbreaking decision, the Hong Kong court in Re Ando Credit Ltd [2020] HKCFI 2775, has appointed provisional liquidators over a Hong Kong-incorporated investment manager for the express purpose of allowing the liquidators to seek recognition in the Mainland. (See Article)

    Dec 10, 2020 7:32 AM

  • Key Regulatory Developments in Hong Kong and Singapore: November 2020

    Regulators propose new regulations for virtual asset exchanges and enhanced customer identity verification requirements, and launch an innovative commercial data interchange. This blog post summarises key regulatory developments in Hong Kong and Singapore during November 2020, including... (See Article)

    Dec 10, 2020 7:32 AM

  • MoFo 2020 Asia Buyouts Report: Update On Deal Terms – II. Fair Disclosure

    We looked at 28 deals across Asia signed or closed pre-COVID-19 in which the buyer or a group of affiliated buyers acquired all or a significant majority of the outstanding equity of the target. We examined the common key terms in these deals and have sought to provide our insights on the patterns that the results reveal... (See Article)

    Dec 9, 2020 5:32 PM

  • Adverse costs order against a party who unreasonably has refused to engage in mediation

    A recent Hong Kong judgment where the court made an adverse costs order against a party who unreasonably has refused to engage in mediation. This article discusses about the implications of this judgment, in particular on parties’ obligation to attempt to engage in mediation and solicitors’ duty to advise their clients of possible alternative dispute resolution processes. (See Article)

    Dec 8, 2020 7:32 AM

  • Back on track – Court of Appeal allows privatization rejected by lower court

    The Hong Kong Court of Appeal has allowed the proposed privatization of a Hong Kong listed company through a scheme of arrangement, overturning the decision of the Court of First Instance (CFI). Please see full Publication below for more information. (See Article)

    Dec 7, 2020 7:31 PM

  • Supplemental Arrangement concerning mutual enforcement of Arbitral Awards between Hong Kong and the Mainland

    On 27 November 2020, the Department of Justice of the HKSAR Government and the Supreme People’s Court of the People’s Republic of China (the PRC) signed the Supplemental Arrangement Concerning Mutual Enforcement of Arbitral Awards between the Mainland and the Hong Kong Special Administrative Region (the Supplemental Arrangement). The Supplemental Arrangement is a welcome development as it removes certain restrictions in the current enforcement regime. (See Article)

    Dec 7, 2020 5:32 PM

  • Hong Kong’s Securities and Futures Commission (SFC) Enforcement Actions Trends and Tracker

    The SFC published its annual report for 2019/2020 in June and has also published its quarterly report for Q2 2020. - These reports show that the SFC continues to focus its enforcement team on cases that have the potential to harm investors and cause serious reputational damage to Hong Kong, as well as highlight some of the other key enforcement trends. Please see full Publication below for more information. (See Article)

    Dec 1, 2020 5:32 PM

  • Hong Kong Government’s Policy Address 2020

    This year’s Policy Address was delivered today (25th November 2020) amidst the backdrop of a changing and dynamic environment. The Chief Executive (“CE”) has set out a variety of key initiatives to address the city’s land and housing supply, infrastructure, the environment, collaboration with the Greater Bay Area (“GBA”), and HK’s ongoing role as an international financial center. (See Article)

    Nov 26, 2020 7:32 AM

  • Hong Kong government announces long-awaited corporate rescue regime

    The Hong Kong government is proposing much-anticipated legislation for the introduction of a corporate rescue procedure and insolvent trading regime. Hong Kong has, for years, struggled to introduce a statutory corporate rescue procedure (CRP), having previously made unsuccessful attempts in 2000-2001, 2008-2009, and 2014. (See Article)

    Nov 26, 2020 7:32 AM

  • Time bar notices: specifying the contractual basis of claim

    Can a valid claim notice issued, on time, referring to one contractual basis, be relied upon where a claim is ultimately pursued on a different ground? In the first authoritative case to consider this issue, the Hong Kong Court of Appeal ruled that it could not. (See Article)

    Nov 25, 2020 7:32 AM