Overview
As China continues to develop as the second largest economy in the world, so too has the number of ultra-high net-worth Chinese individuals and entities. Inevitably, disputes between parties will arise, and experts are necessary to help navigate the international and cross-border implications of these disputes.
Our extensive experience in cross-border enforcement, contentious insolvency and restructuring proceedings allows us to support our Chinese clients in protecting and enforcing their rights. Having acted for very high net worth individuals and their families, we understand the needs of our clients. The strong ties we have developed with some of the best local Chinese firms also allow us to create an international network which ensures we provide top-quality international legal services across China and the Asia-Pacific region.
Recognition of Foreign Judgments & Common Law Debt Claims
With the rapid increase of Chinese-held assets in England and Wales, obtaining a judgment in China is often just the beginning of debt recovery proceedings. Chinese judgments are not automatically enforceable. There are common law principles in place that must be met for foreign judgments to be recognised and enforced in England and Wales.
The fulfilment of these common law requirements is not always straightforward due to the existence of several conditions. Additionally, applications for enforcement might be further complicated by defences that are capable of resisting the recognition of Chinese judgments. Experience is vital for navigating this area of law to ensure that parties can protect and enforce their rights. Our solicitors have done significant work in this area, having defended the recognition and enforcement of a Shanghai International Arbitration Centre award as well as representing a very high net worth Chinese national on enforcement proceedings.
Cross-Border Insolvency Proceedings
As previously mentioned, the increasing number of Chinese nationals holding foreign assets means that insolvency proceedings in China often spill into foreign jurisdictions. These insolvency proceedings can often be drawn out and complex as multiple jurisdictions work together through the restructuring and insolvency process. The United Kingdom’s adoption of the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Cross-Border Insolvency means that a deep understanding of the Cross-Border Insolvency Regulations 2006 is necessary. Our experience in this area includes successfully defending an over £1 billion bankruptcy proceeding originating in Hong Kong on behalf of a very high net worth client. Additionally, the partnerships we have built in China and the Asia-Pacific region mean we are well equipped to handle complex multi-jurisdictional, cross-border insolvency proceedings.
Arbitration
Aside from the enforcement of Chinese judgments in England, our deep and extensive experience in our dispute resolution practice allows us to participate in a range of alternative dispute resolution proceedings. Our expert arbitration lawyers have acted in commercial arbitrations across the world. We have experience in matters involving the Shanghai International Arbitration Centre (SHIAC) as well as being well placed to help clients involved in proceedings with other arbitration centres such as the Hong Kong International Arbitration Centre (HKIAC) and the Singapore International Arbitration Centre (SIAC). We regularly participate in events across Mainland China and Hong Kong, which has allowed us to build a network of international partners who are able to support us in these complex international arbitrations.
Representative Matters
- Re Gate Ventures plc [2020] EWHC 709 (Ch) – Acted for various shareholders in obtaining an administration order against a company that had raised over £24.5 million from nearly 3,000 mainly Chinese shareholders. The case attracted significant media attention as the company was chaired by former BBC boss Lord Grade and had provided an unexplained loan of £500,000 to the Duchess of York, Sarah Ferguson. After successfully obtaining an order for an administrator to be appointed, we investigated claims against the company to trace and recover the misappropriated investments.
- Defended the recognition and enforcement of a Shanghai International Arbitration Centre (SHIAC) award in the UK
- Helped defend against a multi-million-pound common law debt claim against a very high net worth Chinese national originating from two judgments in China
- Bruno Arboit -v- Kei Kin Hung [2024] EWHC 3399 (Ch) – Successfully contested the recognition of an over £1 billion Hong Kong bankruptcy under the Cross-Border Insolvency Regulations 2006. Utilised Article 21 of the UNCITRAL Model Law by demonstrating that the Joint Trustees had used material potentially in contempt of court
- Defended a very high net worth Chinese client against civil and criminal contempt proceedings due to the policing of freezing injunctions and representations regarding the client’s capacity to litigate. Local proceedings arose out of arbitration and litigation proceedings in both Hong Kong and Mainland China.