Hong Kong's Court of Final Appeal recently held that no state may be sued in Hong Kong's courts unless the state waives its immunity, and that submitting to arbitration does not constitute a waiver. This will have a major impact on any business wanting to enforce a claim against a state's assets in Hong Kong. For the first time, the court also referred questions about the interpretation of Hong Kong's Basic Law to the standing committee of the National People's Congress in Beijing.

An Insolvency Practitioner (‘IP’) is appointed to almost all types of insolvency proceedings in Hong Kong.

Unlike many other common law jurisdictions, Hong Kong still lacks a statutory corporate rescue regime, despite the fact that a proposal was first made by the Law Reform Commission in 1996 and a proposed bill containing a corporate rescue regime was introduced in 2001. Corporate restructurings in Hong Kong have been effected through more cumbersome procedures, such as schemes of arrangement or the creative use of provisional liquidators.

The Securities and Futures Commission following the collapse of Lehman has been committed to revamping and codifying the structure and methods of selling structured and other investment products in Hong Kong.

Introduction In recent Swiss restructurings the question has arisen of whether a debt-to-equity swap, executed as a restructuring measure, can be challenged through an avoidance action or can constitute a prohibited – and thus voidable – set-off if the company becomes bankrupt upon execution of the debt-to-equity swap. This update elaborates on these risks and describes a scenario where bank­ruptcy proceedings are opened or a composition moratorium is announced shortly after the com­pletion of a debt-to-equity swap.

The China Insurance Regulatory Commission (CIRC) has issued the "Provisional Measures for the Administration of Utilisation of Insurance Funds", effective 31 August 2010, which apply to capital and assets of Chinese insurance group holding companies and insurance companies.

The Securities and Futures Commission following the collapse of Lehman has been committed to revamping and codifying the structure and methods of selling structured and other investment products in Hong Kong.

Franklin Koo makes the case for extending jury trials to the District Court in the light of Hong Kong’s historical and political context, and provides an interim solution to ease the transition. http://www.hk-lawyer.com/

Hong Kong – Leading accounting firms BDO and Grant Thornton are pleased to announce that their firms have agreed in principle to merge their businesses and practice in the name of BDO Limited. Patrick Rozario, CEO of Grant Thornton said, “Our partners believe that in line with the fast expanding business of the Firm, the business opportunities in China and around the region, we are joining a successful firm which has a solid reputation in the profession and great strength in Hong Kong.