Hong Kong holds strategic advantages as an arbitration hub in Asia, particularly due to its unique arbitration framework and growing commercial activities within China, according to a US-listed legal finance company.
This competitive edge was poised to stimulate more business and increase the frequency of arbitrations, driving growth in the legal finance sector, said Christopher Bogart, CEO and co-founder of Burford.
“The Hong Kong arbitration practice has a long history and is very high quality,” Bogart said in an interview with the Post in Hong Kong.
With the rise of economic activity in China and the special arrangements for arbitration between Hong Kong and the mainland, the city held distinct advantages over other centres, according to Burford. The firm is publicly listed on both the New York and London stock exchanges, managing a portfolio valued at US$7.5 billion.
In February, mainland China introduced a new policy allowing Hong Kong enterprises in certain Greater Bay Area cities to designate Hong Kong as their seat of arbitration – previously not permitted under Chinese law.
The special arrangement facilitated the enforcement of Hong Kong arbitration awards on the mainland more readily than awards from other arbitration centres, according to Bogart. “That is significant,” he said.
