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2026 will see an increase in Hong Kong disputes over fraud claims, cryptocurrency and insolvency, greater judicial collaboration with mainland China, and further digital transformation of local court processes, according to the firm's Hong Kong litigation team.
"Hong Kong commercial litigation continues to deliver landmark decisions with global impact," said the firm's Head of China and local litigator Jojo Fan.
"The city remains a top-tier financial and arbitration hub, in the midst of the Greater Bay Area's booming tech industry, so courts here are tackling groundbreaking cross-border, insolvency and digital asset cases."
Fraud claims and asset recovery on the rise
The team is seeing a surge in high-value claims from fraud allegations, particularly following the collapse of complex commercial transactions.
Disputes also include actions against IPO sponsors and other professional advisers for alleged due diligence failures.
"Asset preservation and recovery measures, such as freezing orders and disclosure orders, are likely to become more common" said partner Jojo Fan.
"Hong Kong courts will continue to grant these remedies robustly, as parties race to trace and recover misappropriated funds."
Crypto disputes go mainstream
As digital assets proliferate, crypto disputes have moved to the forefront of commercial litigation.
Hong Kong courts have been leading the way, delivering landmark decisions that recognise cryptocurrency as property.
"Local courts have also pioneered tokenised injunctions - court orders recorded directly on the blockchain - to freeze digital assets linked to fraud," said partner Truman Mak.
"We expect the courts will continue to apply established legal principles as well as adapting legal tools to digital assets."
Insolvency litigation intensifies
Company insolvencies are expected to remain high in 2026 as economic headwinds continue to weigh on businesses and investments.
"We anticipate an increase in breach of duty claims against directors and professional negligence claims against company auditors," said partner Paul Quinn.
"Creditors are also adopting increasingly assertive tactics in their pursuit of recovery."
These tactics include parallel proceedings across jurisdictions, contesting schemes of arrangements, and seeking recognition of foreign and Mainland insolvency processes under common law and the Mainland-Hong Kong pilot scheme on mutual recognition and assistance.
Cross-border judicial collaboration to increase
Cross-border disputes are rising, and the Hong Kong courts are increasingly granting interim and urgent relief to support proceedings in the Mainland and other jurisdictions.
"The regime for reciprocal enforcement of judgments between Hong Kong and the Mainland has streamlined cross-border remedies, making enforcement faster, more predictable and cost-effective," said partner Rachael Shek.
"Organisations operating across borders in China and the rest of Asia should factor these developments into their dispute resolution strategies."
Digital transformation of the courts underway
The Hong Kong courts are accelerating their digitalisation drive, extending electronic filing to all civil actions at the High Court and enabling remote hearings for civil matters.
These changes are reshaping the management of disputes, reducing waiting times and the need for physical attendance, and improving efficiency in resolving disputes.
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