60TH UIA Congress Budapest/Hungary - October 28 - November 1, 2016 Arbitration Commission: Hong Kong Bar Association/Shanghai Bar Association: Foreign Investment Dispute Resolution Between Chinese and European Parties and the Advantages of Hong Kong as the place of arbitration International Arbitration in Hong Kong – Legal Framework and Advantages Kim M. Rooney Arbitrator and Barrister Gilt Chambers Hong Kong

1. Introduction Shift in Leading International Arbitration Centres Queen Mary’s 2015 International Arbitration Survey - Top 4 arbitrations seats 2006 2015 New York London Paris Switzerland Hong Kong Singapore

1. Introduction (cont’d) Hong Kong common law system Relationship between Hong Kong’s common law system Mainland China’s civil law system Hong Kong’s Arbitration Regime Types of Disputes Commonly Arbitrated in Hong Kong

1. Introduction (cont’d) Distinctive Features of Sino/foreign investment disputes The advantages of conducting arbitration of Sino/European investment disputes in Hong Kong Recent Legal Developments in Hong Kong, including: Third party funding of arbitration

2. The Nature of the Hong Kong Legal System Hong Kong’s Common Law System Based on the English common law Rule of Law Independent Judiciary Independent Legal Profession Continues to develop post 1 July 1997 Constitutionally guaranteed No end date

One Country Two Systems 3. Relationship between Hong Kong legal system and China’s legal system One Country Two Systems Basic Law – Constitution Separate systems impact on Substantive law Arbitration Interim relief Recognition and enforcement of Arbitral Awards Mutual Arrangement with Mainland China

4. Hong Kong’s Arbitration Regime Sources of Hong Kong Arbitration law Arbitration Ordinance Cap 609 UNITARY system based on the UNCITRAL Model Law 2006 (the “UNCITRAL Model Law”) Common law (case law) International Law Regularly updated Best international practice and Hong Kong’s needs

4. Hong Kong’s Arbitration Regime (cont’d) Arbitration Ordinance Cap 609 Party autonomy recognized Choice of applicable law Contract Arbitration Agreement Procedural Choice of venue Choice of arbitrators Choice of representatives

4. Hong Kong’s Arbitration Regime (cont’d) Limited Court Role Effective Enforcement Efficient and fair proceedings

4. Hong Kong’s Arbitration Regime (cont’d) International Law UNCITRAL Model Law Convention on the Recognition and Enforcement of Foreign Arbitral Awards Bilateral Investment Treaties and Free Trade Agreements Customary International law Other

4. Hong Kong’s Arbitration Regime (cont’d) Regularly updated Best international practice and Hong Kong’s needs Recent amendments implemented/proposed Emergency Arbitrator proceedings Interim Relief in aid of foreign arbitrations Third Party Funding Arbitrability of Intellectual Property Disputes

5. The Types of Disputes that Commonly Arise 2015 - 271 arbitration cases filed at the Hong Kong International Arbitration Centre (HKIAC): Commercial disputes - 50% Construction disputes - 22.2% Maritime disputes - 18% Corporate disputes - 8.9% Insurance disputes - 0.9%

5. The Types of Disputes that Commonly Arise (cont’d) The 2015 parties came from 41 different jurisdictions Hong Kong and Mainland China ranked 1st and 2nd

6. Distinctive Features of Sino-Foreign Disputes Institutional v ad hoc arbitration Representation Governing law Applicable procedural rules Seat of arbitration Hearing Venues Interim Relief Review of Awards Setting Aside/Enforcement Other

7. The Advantages of Arbitrating In Hong Kong Party autonomy Freedom of Choice of Arbitrators and Counsel Rule of law Hong Kong’s judiciary Independent Experienced in cross border disputes Cross fertilization (Court of Final Appeal Overseas Non-Permanent Judges sitting with Permanent Judges)

7. The Advantages of Arbitrating In Hong Kong (cont’d) Hong Kong’s Expertise in Dispute Resolution Complex, cross border, multijurisdictional Common law and civil law Multilingual Hong Kong, PRC & International practitioners Open Door Geographical location Infrastructure

7. The Advantages of Arbitrating In Hong Kong (cont’d) Independent and neutral dispute resolution centres HKIAC ICC Asian ICC Court Secretariat CIETAC HK, CMAC HK Innovation and policy development in Hong Kong Effective Enforcement of Awards and Orders

7. The Advantages of Arbitrating In Hong Kong (cont’d) Effective Enforcement of Awards and Orders New York Convention Mutual Arrangements Mainland China Macau Other

8. Recent Hong Kong Arbitration Developments Third Party Funding for Arbitration Emergency Arbitrators Interim Relief in Aid of Foreign Arbitration Intellectual Property Costs Time Alternative Dispute Resolution Dispute Prevention

9. Conclusion Thank you!