New reciprocal enforcement law for Hong Kong, mainland China rulings will secure city’s role as global financial hub, top judge says

A new arrangement allowing courts in Hong Kong and mainland China to reciprocally enforce judgments in civil and commercial cases will strengthen the city’s status as an international financial centre, a top judge has said, reassuring businesspeople that rulings from across the border will not be automatically imposed locally.

Chief Judge Jeremy Poon Shiu-chor of the High Court downplayed concerns as the new cross-border law came into force on Monday, with Secretary for Justice Paul Lam Ting-kwok also hailing the legislation for making the city a more attractive option among international business communities to resolve contractual disputes on the mainland.

The Mainland Judgments in Civil and Commercial Matters (Reciprocal Enforcement) Ordinance has widened the scope of existing legislation to cover civil and commercial matters for reciprocal recognition and enforcement of judgments by courts across the border.

During a seminar organised by the Department of Justice to introduce the new law, Poon said the arrangement would help save time, costs and resources, and reduce uncertainty and stress associated with re-litigation.

“It will enhance public confidence in the legal system, facilitate economic integration and development, and optimise the business environment underpinned by the rule of law for both the mainland and Hong Kong,” he said.

“I must stress, it does not mean that judgments will be automatically recognised or enforced mutually,” he added, citing the procedural steps and the possibility of refusal of enforcement as allowed under the law.

The new ordinance says cross-border enforcement may be refused if the relevant party is not given a reasonable opportunity to defend the action, if the mainland judgment is obtained by fraud or if the parties start legal proceedings in Hong Kong before a mainland court takes on the case.