HKIAC publishes 2024 statistics

The HKIAC recorded significant increases in the number and value of new arbitration cases filed in 2024, according to its most recent statistical report.

The institution (which launched updated rules in 2024 and is celebrating its 40^th anniversary in 2025) reported its highest ever total amount in dispute, while the number of new arbitrations was up 25%.

More than 65% of new arbitrations arose from contracts signed in 2020 or later, and over 40% arose from contracts signed in 2022 or later, according to the HKIAC press release accompanying the statistics.

The figures suggest that the HKIAC remains a popular option for both international and PRC parties, with particular advantages for the resolution of PRC-related disputes (including the ability of parties to HKIAC arbitrations seated in Hong Kong to obtain interim measures from the PRC courts).

Caseload and amount in dispute

• The total amount in dispute in all arbitration cases was a record HK$106 billion (approximately US$13.6 billion), up 14% from the 2023 figure (which was itself 35% higher than the previous record in 2020).

• The average amount in dispute in arbitrations administered by the HKIAC was HK$375 million (approximately US$48.1 million).  While 20% lower than the record in 2023, this was the second-highest average amount in dispute since the HKIAC first began publishing this statistic in 2017.

• The total number of new cases (comprising arbitrations, mediations and domain name disputes) was essentially level at 503 (compared with 500 in 2023).

• The number of new arbitrations increased both in absolute terms (up 25% from 2023 to 352 cases, described by the HKIAC as its "highest ever caseload") and as a percentage of the total number of new cases (70% versus 56% in 2023).

• Arbitrations administered by the HKIAC under its own rules or the UNCITRAL Rules comprised 249 of the new cases, up 35% since 2023 and only slightly below the record of 256 in 2022.

Origin of parties

• Parties from 53 jurisdictions participated in the arbitrations submitted in 2024, down 16% from the record high of 63 in both 2023 and 2022.

• The top five geographical origins of parties were Hong Kong, the mainland PRC, the British Virgin Islands, the Cayman Islands and Singapore (the same as both 2022 and 2023).  The USA came sixth (unchanged from 2023), while Russia dropped out of the top ten after coming seventh in 2023.

• Just over three quarters (76.4%) of new arbitrations as a whole and 86.1% of new administered arbitrations were described by the HKIAC as "international" in nature (i.e. at least one party was not from Hong Kong), broadly in line with the 2023 figures (75.1% and 89.7% respectively) and the averages of all years for which data is available (73.7% and 88.3% respectively).

• Parties from the mainland PRC featured in 40.6% of new arbitrations, up slightly from 39.5% in 2023.

• 21% of new arbitrations submitted in 2024 involved no parties from Hong Kong or the mainland PRC (no comparative figure was provided for 2023).

Governing laws

• 15 different governing laws were applicable, up slightly from 14 in 2023.  Hong Kong law, English law and PRC law were the most popular choices (in that order), unchanged from 2023.

Languages of arbitration

• 79.3% of the administered arbitrations commenced in 2024 were conducted in English, down slightly from 83% in 2023 and broadly consistent with the 10-year average of 80.9%.

• The proportion of Chinese-language arbitrations increased to 15.9% (compared with 12% in 2023).

• Bilingual English/Chinese arbitrations made up 4.3% of the total (down slightly from 5% in 2023).

Arbitrator nationalities

• Arbitrators from 30 different nationalities or geographic origins were appointed in 2024, an increase of more than 75% on the 2023 figure of 17 nationalities or geographic origins.

• Arbitrators from Hong Kong continued to appear most frequently, comprising 30.9% of arbitrators appointed by the HKIAC (up from 29.7% in 2023) and 35.3% of arbitrators designated by the parties or co-arbitrators and confirmed by the HKIAC (up from 27.6% in 2023).

• Arbitrators from the UK took second place (replacing dual nationals in that position from 2023), comprising 21.2% of arbitrators appointed by the HKIAC (up from 12.8% in 2023) and 24.1% of arbitrators designated by the parties or co-arbitrators and confirmed by the HKIAC (up from 16.1% in 2023). 

• The proportion of arbitrators with mainland PRC nationality increased to 7.1% of arbitrators appointed by the HKIAC (up from 6.4% in 2023) and 7.9% of arbitrators designated by the parties or co-arbitrators and confirmed by the HKIAC (up from 6.3% in 2023).  In both categories, arbitrators from the mainland PRC were the fourth most frequently appointed.

Diversity in arbitrator appointments

• There was a mixed picture in relation to female arbitrator appointments.  Female arbitrators made up just over one third (34.7%) of all appointments made by the HKIAC, essentially flat when compared with the 2023 figure (34.9%).  The proportion of female arbitrators designated by the parties and co-arbitrators, however, increased to 19.1% (up from 12.8% in 2023) and 25.4% (up from 19.2% in 2023) respectively.

• Arbitrators not previously appointed over the last three years made up 36.7% of all appointments made by the HKIAC (up from 34.3% in 2023), 40.8% of arbitrators designated by the parties (2.5 times the 2023 figure of 16.3%), and 44.5% of arbitrators designated by co-arbitrators (more than double the 2023 figure of 19.2%).

• In last year's blog on the HKIAC's 2023 statistics (available here), we noted that diversity considerations appeared to be having a limited impact in the majority of arbitrator designations by parties and (to a lesser extent) co-arbitrators.  The 2024 statistics could indicate an increased impact of such considerations on designations, although a range of factors may have been in play and it is difficult to draw conclusions from a single year's figures.  It also remains to be seen how potential shifts in attitudes to DEI considerations may impact the diversity of arbitrator appointments going forward. 

Arbitrator challenges

• Only five challenges to arbitrators were submitted to the HKIAC in 2024 (unchanged from 2023), equating to just over 1% of all arbitrators appointed in 2024.  Of those challenges, one was sustained, one was agreed between the parties (resulting in the resignation of the challenged arbitrator), two were dismissed, and one was still pending as of the end of 2024.

• These figures indicate that challenges to arbitrators are rare and successful challenges are even rarer, as also demonstrated in the 2024 case of P v. D [2024] HKCFI 1132 (which we reported here), in which the Hong Kong Court of First Instance upheld the decision of the HKIAC to dismiss a challenge to two arbitrators "of standing and experience" made on the basis of apparent bias.

Multi-party / multi-contract arbitrations

• More than one third (38%) of the arbitrations submitted in 2024 involved multiple parties or contracts, compared with nearly two thirds (59%) in 2023. 

• A single arbitration was commenced under multiple contracts in 14% of cases (compared with 16% in 2023).

• Consolidation was requested in seven cases, with four applications granted and three rejected.  There were two requests for joinder, of which one was granted and one was still pending as of the end of 2024.

• These figures underline the frequency with which multi-party / multi-contract issues arise in practice, as illustrated by two 2024 decisions in which the Hong Kong courts found that HKIAC tribunals did not have jurisdiction because of incompatible arbitration agreements (reported here and here).

• The HKIAC recently published a practice note on certain multi-party, multi-contract issues (reported here), covering the circumstances in which arbitration agreements will (and will not) be deemed "compatible" for the purposes of commencing a single arbitration under multiple contracts or consolidating multiple arbitrations, and the approach of the HKIAC to arbitrator appointments in such scenarios.

Interim measures arrangement with mainland PRC

• Parties to HKIAC arbitrations benefit from the interim measures arrangement between Hong Kong and the mainland PRC, pursuant to which the mainland PRC courts can grant interim relief in support of arbitrations seated in Hong Kong and administered by the HKIAC and other qualifying institutions.

• The HKIAC processed 40 applications to 21 different mainland PRC courts (compared with 13 in 2023) under the arrangement in 2024, seeking to preserve evidence, assets or conduct in the mainland PRC worth a total of RMB 9.1 billion (approximately US$1.2 billion).  This was more than double the 19 applications processed in 2023.

• The HKIAC says it is aware of 31 decisions from the mainland PRC courts in response to those applications, issuing orders to preserve RMB 6.3 billion (approximately US$865 million) worth of assets (a success rate by value of approximately 72%).

• Approximately 55.8% of the applications concerned assets in the mainland PRC owned by mainland PRC parties, while 44.2% concerned assets or evidence in the mainland PRC owned by non-mainland parties.

• Since the arrangement came into force in 2019, the HKIAC has processed a total of 145 applications in respect of RMB 35.3 billion (approximately US$4.8 billion) in assets.  The HKIAC says it is aware of 106 decisions issued by mainland PRC courts up to 2024, of which 102 granted the applications upon the applicant's provision of security (a success rate of 96%) and preserved assets worth RMB 24.7 billion (approximately US$3.4 billion) (a success rate by value of approximately 70%).

Emergency, expedited and early determination procedures

• Five emergency arbitrator applications were submitted in 2024 (compared with three in 2023), with 40 such applications having been submitted in total since the emergency arbitrator procedures were introduced in 2013.

• 24 applications for the expedited procedure were submitted (unchanged from 2023), of which 13 were granted, 9 rejected and two were still pending as of the end of 2024.

• Three applications for early determination were submitted (down from five in 2023), of which two were granted and one was rejected.

Funding of arbitrations

• Disclosure of third party funding (which has been permitted for arbitration in Hong Kong since a new legal regime came into force on 1 February 2019) was made in one arbitration in 2024 (unchanged from 2023).

• Six disclosures of outcome-related fee structure agreements between clients and their lawyers were made in 2024, with half having been concluded after the commencement of arbitration.  Disclosures were made in three cases in 2023 (the first full year in which such arrangements have been permitted for arbitration in Hong Kong, after changes to the law came into effect on 16 December 2022).

Virtual hearings

• 39% of hearings hosted by the HKIAC were fully or partially virtual, compared with 43% in 2023 and 81% in 2022.  Although the post-pandemic trend continues to be downwards, the relative flattening of the figures over the last two years may suggest that virtual hearings will continue to be utilised in a meaningful proportion of cases going forward (as we noted in our blog on last year's statistics).