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

Hong Kong Securities and Futures Commission seeks to bolster investor compensation remedies as part of a package of enforcement-related reforms

The Hong Kong Securities and Futures Commission’s (SFC) proposal for sweeping enforcement-related reforms would significantly impact the regulatory landscape in Hong Kong.  If the proposals are adopted as drafted, firms and individuals will need to prepare themselves for the more aggressive enforcement action and potentially greater financial consequences. Our detailed e-bulletin on the proposed reform … Read more

Herbert Smith Freehills secures further victory in Hong Kong’s Court of Appeal for bank in defending liquidator claim for fraud

Last week, the Hong Kong Court of Appeal refused to grant liquidators (the “Liquidators“) of Galleria (Hong Kong) Limited (“Galleria“), a Hong Kong company, leave to appeal to the Court of Final Appeal in relation to their action against one of Galleria’s former lenders (the “Bank“) for knowing receipt, dishonest assistance and fraudulent trading. The … Read more