Hong Kong Insolvency Law Reform: Preparing for the Next Millennium

Abstract

When China resumed sovereignty over Hong Kong on July 1, 1997, Hong Kong’s economy was strong, the stock and property markets were high, and the general consensus was that the economy would continue to prosper. In the second half of 1997, an economic crisis began to engulf Asia and Hong Kong and Hong Kong slid into a recession. The economic crisis led to a sharp increase in the number of insolvencies in Hong Kong. It also increased awareness of the role that insolvency law can play in facilitating economic recovery. This article discusses insolvency law reform in Hong Kong, focusing on bankruptcy law (that came into operation in 1998) and corporate rescue.