Hong Kong launches stakeholder consultation on arbitration law reform

A stakeholder consultation on proposed amendments to the Hong Kong Arbitration Ordinance has been launched following a review of the legislation by an expert working group (covered in our previous blogs here and here).

Key recommendations published by the Hong Kong Department of Justice include:

• A default rule that the law of the seat should govern the arbitration agreement, unless the parties agree otherwise;
• Judicial review of negative jurisdictional rulings by tribunals;
• Provision for tribunals to summarily dispose of issues, claims and defences found to be manifestly without merit or manifestly outside the tribunal's jurisdiction;
• An extended time limit to set aside awards in cases of fraud or corruption;
• Refinements to the mechanism for appeals on questions of law; 
• Expanded opportunity to seek leave to appeal in cases involving the setting aside or enforcement of awards;
• Clarification of the powers of the courts and tribunals in relation to the awarding of costs after a successful set-aside application;
• The abolition of automatic stays of enforcement pending challenges to enforcement; 
• A statutory framework for the arbitration of internal trust disputes; and
• Provision for electronic awards and signatures to be recognised and enforced.

If enacted, the changes would mark the most significant and wide-ranging update to the Arbitration Ordinance since it first came into force in 2011 (reported here).

Arbitration law reform is part of the Hong Kong government's broader work to deepen and enhance Hong Kong's status as an international legal and dispute resolution services hub, as reflected in the Chief Executive's 2026 policy address and Hong Kong's First Five-Year Plan.  Other related developments include the establishment in the city of the International Organization for Mediation in 2025 (reported here) and the announcement by the Hong Kong judiciary of its intention to establish the Hong Kong International Commercial Court (reported here).

According to the press release announcing the consultation, the consultation paper will be issued to relevant stakeholders, including legal professional bodies, arbitral institutions, dispute resolution and law-related bodies, arbitration practitioners and legal professionals, government advisory bodies and departments, statutory bodies, academics, chambers of commerce, trade associations, banks and wealth management associations, and other commercial end-users of arbitration services.

The consultation will be open for stakeholder comments until 27 October 2026 and the Hong Kong government has indicated its intention to complete any necessary legislative amendments in 2027.

Simon Chapman KC of Herbert Smith Freehills Kramer is a member of the working group whose recommendations formed the basis for the consultation.