The Hong Kong International Arbitration Centre (the “HKIAC”) recently released its case statistics for the year 2023. The data demonstrates Hong Kong’s continued prominence as a centre for international arbitration while also featuring as a unique forum for resolving PRC-related disputes. Notably the total amount in dispute hit a record high of US$12.5 billion with Hong Kong arbitration continuing to appeal to international parties.
The HKIAC 2023 Statistics can be found here.
Highlights of 2023
Record high amount in dispute
HKIAC reports a record high figure in the total amount in dispute in arbitrations: HK$92.8 billion (approximately US$12.5 billion).
In 2023, 500 cases were submitted to HKIAC, of which 281 were arbitrations, 10 mediations and 209 domain name disputes. Among the 281 arbitrations, 184 were administered by HKIAC.
Compared to 2022, despite a slight decrease in the total number of cases (515 in 2022), the total amount in dispute hit the highest point in history, more than double the figure in 2022 (HK$43.10 billion, approximately US$5.5 billion).
Appeal to international parties
The majority of arbitrations submitted to HKIAC (75.1%) in 2023 were international in nature, i.e., where at least one party was not from Hong Kong. The jurisdiction of participants remained diverse, namely from 45 jurisdictions.
The top 5 geographical origins of participants remain unchanged from 2022, being Hong Kong, China Mainland, British Virgin Islands, Cayman Islands and Singapore. The United States was sixth, while Russian parties were seventh (emerging in the top 10 for the first time).
The full list is as follows:
Fourteen different governing laws were applicable with Hong Kong law most commonly selected, followed by English then PRC law.
83% of the HKIAC-administered arbitrations were conducted in English, compared with 12% in Chinese and 5% in both English and Chinese.
Resolution of PRC-related disputes: interim measures under the Hong Kong-Mainland arrangement
The Hong Kong-Mainland China arrangement on interim measures (“Arrangement”) has proved to be a unique advantage of Hong Kong for resolution of PRC-relate disputes.
2023 saw 19 applications made to 13 different PRC courts, preserving assets or conduct worth a total of RMB3.5 billion (approximately US$491 million) in China Mainland. Around 82.8% of applications were made by parties from Hong Kong, Singapore, Cayman Islands, Germany, Australia and the British Virgin Islands. These highlight the unique role of Hong Kong as a seat where protection is required during PRC-related disputes.
Other trends in HKIAC 2023 Statistics
Corporate sector becoming the major battlefield
After a surge in the number of cases concerning banking and financial services in 2022, the number dropped in 2023, accounting for only 11.4% of all cases registered with HKIAC. Instead, the battlefield has shifted to the corporate sector, accounting for 21% of all cases, followed by construction (17.1%), commercial (16%) and maritime (16%).
In-person hearings are back in the post-Covid era
With the cancellation of travel restrictions and other epidemic-control measures, in-person hearings are back in the post-Covid era.
In 2023, HKIAC hosted 101 hearings, of which 44 were fully or partially virtual hearings, and 57 were in-person. This marks a stark contrast to 2022, where more than 80% of hearings were conducted virtually.
This shift indicates that conventional, in-person hearings still appear to be the preferred mode, despite the reliance on virtual hearings during the pandemic.
