The number of arbitration cases received by the Hong Kong International Arbitration Centre (HKIAC) grew from 280 cases in 2004 and 281 cases in 2005 to 394 cases in 2006, confirming Hong Kong's position as one of the leading arbitral venues in the world.
Of the 394 cases:
99 cases involved both Hong Kong and foreign parties, and 42 cases were solely between non-Hong Kong parties.
Of those 42 cases, 38 involved at least one Chinese entity or national while 18 of the cases involved PRC entities or nationals exclusively.
These figures confirm Hong Kong's position as the international arbitral venue of choice for foreign-Chinese party disputes, and attest to the effectiveness of a 1999 arrangement *1, which provides for the recognition and enforcement of Hong Kong arbitral awards in mainland China and vice versa.
It is also interesting to note that despite the question of whether domestic entities are permitted to arbitrate their disputes outside of China, the number of such cases being handled by the HKIAC continues to grow.
*1 Arrangement Concerning Mutual Enforcement of Arbitral Awards between the Mainland and the Hong Kong Special Administrative Region