Third party funding has become increasingly common in numerous
common law jurisdictions over the last decade. Hong Kong is at a
relatively early stage of development in this regard, likely due to
the fact that third party funding of litigation with a view to
profit may potentially constitute both tort and the criminal
offences of champerty and maintenance in Hong Kong. As regards
third party funding of arbitrations in Hong Kong, the position is
not clear although that may be about to change.
This Article considers the restrictions on third party funding
in Hong Kong, the current position in relation to third party
funding of litigation in Hong Kong, as well as the much anticipated
Consultation Paper recently released by the Law Reform Commission
of Hong Kong recommending that third party funding for arbitrations
should be permitted in Hong Kong.
