Asian Private Banker quotes Stephen Chan on the new rules on reciprocal enforcement in Hong Kong
Stephen Chan, Partner, provides comment for Asian Private Banker on the new regime for reciprocal enforcement of judgments between Hong Kong and China and outlines that it may potentially be a powerful tool in fraud and asset tracing cases where funds and assets may cross both Hong Kong and China.
Stephen outlines that certain types of judgments and orders from mainland China may be controversial and it remains to be seen how the Hong Kong courts will apply safeguards to set aside the registration of judgment in appropriate situations.
For instance, it is not uncommon in mainland China for courts to impose consumption restrictions on debtors to enforce a creditor’s claim, such as restricting spending on flights, enrolment of children in private schools and purchasing real estate.
Stephen believes that Hong Kong courts may set aside the registration of these types of mainland judgments on public policy grounds as it potentially infringes upon the city’s Basic Law and Bill of Rights. He said it will likely be a few years for the new regime to take shape and new case law to be settled.
When private banks advise clients on investment products, territorial risk is a real factor.” It would not be surprising if clients consider the risk profile for the short to intermediate term is going to be higher for Hong Kong.
Read the full article in Asian Private Banker here (subscription required).
