Offshore Litigation And Hong Kong Seated Arbitrations

Bermudan, British Virgin Islands ("BVI") and Cayman Islands companies are frequently used as investment vehicles for Hong Kong and Chinese companies and individuals. This is reflected in the frequency with which they are a party to Hong Kong seated arbitrations: the HKIAC's 2021 statistics record that the BVI and the Cayman Islands were, respectively, the third and fourth most common geographic origin or nationality of parties in HKIAC arbitrations in 2021. The BVI, Bermuda and Cayman Courts frequently deal with matters ancillary to arbitrations seated in jurisdictions in the Asia Pacific region in which parties seek recovery of shares or enforcement of damages claims against assets in those offshore jurisdictions. This article discusses the key offshore litigation tools available to parties in Hong Kong arbitrations, with reference to recent developments in the law in Bermuda, BVI and Cayman.