HK Move To Obey China Court Orders Rattles Businesses

Wealthy Chinese with assets in Hong Kong are expressing concerns about what could happen to their holdings under a new ordinance that will make it easier for mainland court orders in civil cases to be enforced in the city, lawyers and bankers say, Pak Yiu and Echo Wong reported for Nikkei Asia.

Legal experts say the new ordinance on reciprocal enforcement could boost Hong Kong's role as a center for resolving cross-border disputes.

Scheduled to take effect on Jan. 29 next year, the Mainland Judgments in Civil and Commercial Matters (Reciprocal Enforcement) Ordinance provides for the reciprocal recognition and enforcement of civil rulings by courts in Hong Kong and on the mainland.

Legal experts say the new ordinance on reciprocal enforcement could boost Hong Kong's role as a center for resolving cross-border disputes. However, wealthy Chinese doubt the fairness of mainland court decisions and warn it could push more businesses to leave Hong Kong.

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