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24 Jun 2020

Should parties adopt an asymmetric jurisdiction clause in contracts involving Mainland China and Hong Kong entities?

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It has been held in Industrial and Commercial Bank of China (Asia) Limited v Wisdom Top International Limited [2020] HKCFI 322, that under the Mainland Judgments (Reciprocal Enforcement) Ordinance (Cap 597) (the “Ordinance”), an asymmetric jurisdiction clause (“AJC”) will not be regarded as an exclusive jurisdiction clause. The Ordinance gives effect to the Arrangement on Reciprocal Recognition and Enforcement of Judgments in Civil and Commercial Matters by the Courts of the Mainland and of the HKSAR signed on 14 July 2006 (the “2006 Arrangement”).

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