On 3 December 2021, the Research Course on“Enterprise Financing Model and Financing-related Dispute Resolution” organized by China International Economic and Trade Arbitration Commission Hong Kong Arbitration Center (CIETAC Hong Kong) was successfully held. This event was one of the “Small and Medium-sized Enterprise Dispute Resolution Seminar Series” organized by CIETAC Hong Kong, and was supported by many institutions of Hong Kong and mainland, including ASIA CEO Community Limited , China Association for Small & Medium Commercial Enterprises , China Centre for Promoting SME Cooperation and Development , Federation of Hong Kong Industries , The Hong Kong General Chamber of Commerce , Support and Consultation Centre for SMEs (SUCCESS) of Trade and Industry Department of  the Government of the Hong Kong Special Administrative Region , Global Alliance of SMEs , The Chinese General Chamber of Commerce, Hong Kong , Legal Affairs Steering Committee of The Hong Kong Chinese Enterprises Association , The Chinese Manufacturers’ Association of Hong Kong , and Legal Affairs Committee of Chinese Banking Association of Hong Kong .

This course was conducted through a combination of online and offline methods. The main venue was set up in the meeting room of CIETAC Hong Kong at Hong Kong Central Justice Place  . It attracted about 190 representatives of small and medium-sized enterprises, financing and legal practitioners and young students from Hong Kong and the Mainland to register and participate.

(Secretary General of CIETAC Hong Kong, Dr. Wang Wenying)

Dr. Wang Wenying, Secretary General of CIETAC Hong Kong, delivered an opening speech for this course. She briefed about the latest development of CIETAC and CIETAC Hong Kong, and demonstrated CIETAC’s rich experience in dispute finance-related dispute resolution based on the  statistics of caseload and the amount of disputes. She emphasized that small and medium-sized enterprises (SMEs) are the main force of national economy and social development, and they play an important role in promoting growth, ensuring employment, activating the market, improving people's wellbeing and other aspects. She pointed out that the financing situation of SMEs would be more complicated and severe under the pandemic. In order to assist SMEs in coping with the difficulties encountered during the pandemic and effectively assist SMEs in enhancing their competitiveness, CIETAC Hong Kong planned the “Small and Medium-sized Enterprise Dispute Resolution Seminar Series”, in order to help SMEs deal with the financing difficulties.

(CIETAC Hong Kong Deputy Legal Counsel, Mr. Ou Jintao)

This course was hosted by Mr. Ou Jintao, Deputy Legal Counsel of CIETAC Hong Kong.  Mr. Lin Gangfeng, Founder of ASIA CEO Community Limited , Ms. Zhang Xiyuan, Partner of Dorsey Law Firm ,  Ms. Chen Fanghan, Legal Counsel of CIETAC Hong Kong, delivered speeches respectively on the topics of ‘Introduction of Common Financing Model For Enterprises’  ‘Using the Double-edged Sword of Litigation to Solve the Financing Disputes and Other Commercial Disputes More Effectively’  ‘The Advantages of Handling Financing Related Disputes through Hong Kong Arbitration’ , introduced common financing problems of SMEs, and gave opinions and suggestions on the prevention and resolution of financing related disputes.

(Founder of ASIA CEO Community Limited, Mr. Lin Gangfeng)

Mr. Lin Gangfeng introduced three common financing models of enterprises, such as traditional debt, traditional equity and debt-to-equity swap. He concluded the advantages and disadvantages and applicability of different financing models by exemplifying each model’s typical financing methods, and provided his own understanding on the application of financing method according to the different scenarios that SMEs might confront with.

(Partner of Dorsey Law Firm, Ms. Zhang Xiyuan)

Ms. Zhang Xiyuan analyzed the concerns and myths of SMEs regarding legal proceedings by delivering relevant statistics of Hong Kong Department of Justice . After that, she summarized the common strategic actions in litigation procedures and recommended how SMEs can lower the risk of litigation and pressure on litigation costs, and seek alternative dispute resolution methods.

(Legal Counsel of CIETAC Hong Kong, Ms. Chen Fanghan)

Ms. Chen Fanghan introduced the advantages of Hong Kong as a seat of arbitration when dealing with financing disputes, and the cost and time usually required to resolve disputes in CIETAC Hong Kong. Combined with past cases, she analyzed the enforcement of the CIETAC’s financing-related arbitral awards in the Mainland and gave tips on the matters needing attention in the drafting of the arbitral clause in the financing contracts.

(Group Photo of the Speakers of this Course)

During the question and answer session, three speakers had active communication and interaction with participants. After the course, the offline participants were issued with a training certificate. This activity is another activity of SME dispute resolution series successfully held by CIETAC Hong Kong after the themed course of “Company Equity and Sales Contract Dispute Course” held in 20 October, 2021.