Hong Kong is at a particularly interesting time in its development. Historically, the trading gateway between the vast riches of China and the upstart European powers before becoming one of the world’s pre-eminent international finance hubs, recent developments have seen much commentary on a perceived swing back towards China which has left many wondering about the viability of its long-term future as an international business powerhouse. At a time when IPO activity has slowed to a trickle, and some lawyers have relocated their Asia headquarters to Singapore, much remains uncertain – though Hong Kong still retains a unique character that no other city can fully emulate.  

So, how is the situation on the ground really? During a trip to the Pearl of the Orient in September of last year, we had the pleasure of chatting with a number of highly regarded general counsel in Hong Kong to get their take on things. Two particularly enlightening interviews were with Michelle Hung, general counsel and company secretary of COSCO Shipping Ports, and Victor Ding, general counsel – CLPe at CLP. For the on-the-record part of the interview, the following question was asked to both: 

GC: Taking a strategic view, what do you see as the main economic and geopolitical factors that you think will impact your industry over the next five to ten years? 

Michelle Hung: The ever-changing global political and economic landscape will inevitably cause uncertainties to our businesses.  Recent changes in international trade and global supply chains following the COVID-19 pandemic have impacted our operations.  However, we are still optimistic about our ports’ businesses as global economic recovery is underway. The workforce aging trend will also have an impact on our industry.  As the workforce ages, increased attention to staff training, career planning, new skillsets requirements, and medical benefits is essential.  Addressing the workforce aging is crucial for maintaining productivity and developing necessary capabilities in the following decade. Producing and burning fossil fuels creates air pollution and generates toxic emissions that cause climate change.  New forms of renewable energy for the transportation, marine and aviation industries might be developed as a replacement for fossil fuel in the near future.

Victor Ding: ‘ESG will remain important in the next five to ten years given the pace at which countries and companies are trying to achieve each’s respective ESG goals.  Although we have seen at COP 28countries prioritising stability of their own economies and citizens, climate change is not going away. In particular, our industry has commenced and will continue the energy transition journey, moving away from carbon-intensive electricity generation. In addition, geopolitics will likely continue to play a role in the Asia Pacific region. From a legal perspective, seeking approval for investments into jurisdictions with foreign investment review requirements adds a layer of uncertainty in deal-making.’ 

MH: In terms of how we tackle problems in our day-to-day work, AI is set to be a transformative force in the coming years, reshaping the way people work and live.  Leveraging AI’s capabilities can enhance industry efficiency and productivity, allowing more focus on high-value issues.  Allocation of sufficient investment in AI technology and knowledge building is crucial for staying competitive and enhancing competence in the long run. 

GC: Are in-house counsel in a strong position in times of change?

MH: In-house legal counsel play a multifaceted role beyond providing legal advice, and will be at the forefront of dealing with these challenges.  We are instrumental in formulating optimal legal solutions in line with the corporate long-term development objectives and strategy.  The foreseeable challenge lies in legal advice on future global acquisitions which will involve considerations on geopolitical and sanction issues. One consistent challenge for in-house legal teams is resource constraints. In-house legal departments often lack the sufficient manpower to cater for the workload arising from non-routine substantial transactions – all future progress must be made in light of this.