GENERIC RELIANCE ON PRC-HONG KONG ENFORCEMENT ARRANGEMENTS INSUFFICIENT TO OPPOSE LIABILITY FOR SECURITY FOR COSTS

In Du Guorong v Bank of China International Limited and BOCI Securities Limited [2022] HKCFI 2777, the Hong Kong Court of First Instance offered its latest guidance on a defendant’s entitlement to security for costs in Hong Kong proceedings from a plaintiff ordinarily resident in the PRC. Notwithstanding the arrangements between the two jurisdictions related … Read more

Mainland China Increases Proportion of Construction Progress Payments for Government Related Projects

In June 2022, the Ministry of Finance (“MOF”) and the Ministry of Housing and Urban-Rural Development (“MOHURD”) jointly released the “Circular on Improving the Methods for the Settlement of Construction Price”, which became effective on 1 August 2022. Mainland China has long regulated the proportion of the contract price in government projects, which must be … Read more

Getting paid: A new bill to streamline construction disputes in Thailand

Construction disputes between contractors and employers in Thailand can take years to be resolved in court or arbitration. This can result in construction work being delayed and sometimes abandoned, and contractors facing financial difficulties. In response, Thailand is considering the introduction of a draft bill titled “Act on the Settlement of Disputes regarding Payment in … Read more

Herbert Smith Freehills successfully strike out a HK$3 billion fraudulent trading claim commenced against an IPO sponsor in breach of mandatory procedural rules

Last week, the Hong Kong Court struck out a fraudulent trading claim brought by the liquidators (the “Liquidators“) of China Metal Recycling (Holdings) Limited (“China Metal“) against one of its sponsors (the “Sponsor“) on the ground that it was brought as a High Court Writ action (the “Action“), in breach of the mandatory statutory requirement … Read more

COMI is first port of call – a modified framework for recognising foreign insolvency proceedings in Hong Kong

Historically, the common law has only recognised foreign insolvency proceedings commenced in the jurisdiction in which the company is incorporated. This may no longer be the case in Hong Kong. Going forward, a Hong Kong court will now recognise foreign insolvency proceedings in the jurisdiction of the company’s “centre of main interests” (COMI). Indeed, it … Read more