Government advisors have urged Hong Kong to fully leverage its unique common law system to boost economic growth as the city formulates its first Five-Year Plan.
The Chief Executive’s Policy Unit (CEPU) recently hosted two “Fireside Chat with CEPU Experts” sessions with academic and industry leaders to discuss the city’s institutional advantages.
In one of the sessions, Richard Wong Yue-chim, provost and deputy vice-chancellor of the University of Hong Kong, cited a 2008 study analyzing economic data from 150 countries over a century and pointed out that common law jurisdictions typically boast a higher ratio of stock market capitalization to gross domestic product (GDP).
Wong explained that the system offers greater efficiency in property rights protection and handling business disputes, such as recovering bounced checks or evicting defaulting tenants. He added that this legal predictability reduces business risks and facilitates diverse financing channels.
Wong suggested Hong Kong upgrade its role from a “super-connector” to a “super value-adder” to attract more talent and capital.
Edward Liu Yang, a CEPU expert and partner at Haiwen & Partners, analyzed the city’s edge in international shipping and commercial dispute resolution in another session.
He argued that Hong Kong’s true competitiveness lies in its ability to attract complex transactions rather than merely competing on traditional port throughput volumes.
Liu noted the city offers a complete institutional package, combining an independent judiciary with shipping insurance, trade financing and an offshore Renminbi hub.
He urged the government to integrate resources like the International Organization for Mediation, the Hong Kong International Commercial Court and local arbitration institutions to help mainland enterprises expand globally. He added that Hong Kong should actively promote its legal platform to emerging markets in the Middle East, the Association of Southeast Asian Nations and Europe.
Stephen Wong Yuen-shan, head of CEPU, described the robust common law system as a core strategic asset for the city's future. He said the data-driven research and practical industry experiences shared during the seminars will serve as crucial references for the upcoming Five-Year Plan development blueprint.
