With its common law system and deep integration with the Chinese mainland market, the Hong Kong Special Administrative Region is ideally positioned as a global center for corporate restructuring, Deputy Secretary for Justice Horace Cheung Kwok-kwan said on Sunday.

Speaking at the International Symposium on Global Corporate Restructuring Center, Cheung said Hong Kong's legal system provides unparalleled advantages for business and investment, corporate restructuring and dispute resolution across Asia and beyond.

“In an era of growing complexity, businesses need to anchor in a jurisdiction that offers stability and connectivity,” Cheung said.

“Hong Kong delivers precisely this – a common law system integrated with the world's second largest economy, powered by world-class professionals conversant in global commerce and a robust and reliable dispute resolution mechanism.”

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Cheung said Hong Kong's distinctiveness lies in the “one country, two systems” principle, which preserves the city’s common law system that is highly regarded by international community and reinforces its “unique position to bridge the East and the West”.

"This is not just theoretical - it translates into tangible expertise through our 13 000 solicitors and barristers, 560 Hong Kong lawyers licensed to practice in the Greater Bay Area (GBA), as well as 1,500 registered foreign lawyers, many of whom are multilingual and qualified in multiple jurisdictions," he said.

Cheung said the SAR also has over 6,500 firms providing accounting, auditing and tax consultancy services. The Hong Kong Institute of Certified Public Accountants has a membership of over 47,000, who are recognized globally in such diverse places as Australia, Canada, England and Wales, and South Africa.

“What does this mean? When international investors face cross-border restructuring or insolvency, they can count on our professionals who master common law principles and international standard as well as the complexities of the mainland market,” Cheung said.

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He said such expertise is amplified by the SAR's unmatched connectivity with the mainland, offering effective pathways through nine mutual legal assistance arrangements in civil and commercial matters.

Cheung said a European investor restructuring a mainland-based joint venture could gain critical tools simply by choosing the Hong Kong SAR.

“Firstly, in assets preservation, businesses may obtain mainland court orders to freeze assets or preserve evidence — a relief which is not available for arbitration seated in common law jurisdiction other than Hong Kong,” he said.

Cheung said businesses may also enforce Hong Kong arbitral awards and court judgments in the mainland, the coverage of which is the widest globally, including judgments on intellectual property rights which are not covered in international conventions.

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“Thirdly, streamlined restructuring and liquidation: A Hong Kong-appointed liquidator can access mainland courts in Shenzhen, Shanghai and Xiamen to take control of the company's assets and records in the mainland, facilitating an effective corporate restructuring or at times, winding up,” he said.

“This seamless integration makes Hong Kong the optimal choice for business and investment and also cross-border restructuring with mainland elements,” he added.

Cheung said Hong Kong’s advantages also extend to dispute resolution, with the SAR ranked second globally as an arbitration seat under the 2025 Queen Mary University of London and White & Case International Arbitration Survey.

In 2024, over 76 percent of the cases handled by the Hong Kong International Arbitration Centre were international, with claims averaging HK$375 million ($47.77 million), reflecting international trust in Hong Kong's role in high-stakes cases, he said.

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Cheung said Hong Kong is also positioning itself as “the capital of mediation” as highlighted by recent establishment of the International Organization for Mediation in the city.

For regional integration, the SAR is closely collaborating with its GBA partners to deploy Hong Kong mediation organizations to handle commercial mediation cases as referred to by the GBA courts; export Hong Kong's best practice to develop GBA standard, including specialized mediation rules; and establish a unified GBA Mediators Panel for cross-border expertise, he added.