In the same way that Hong Kong’s economy was labeled by some media and experts as “over” when it is actually far from that but just transforming and adapting to the current times, Hong Kong’s legal system has also been criticized more than once, unfairly in my opinion.

Indeed, Hong Kong is a special administrative region of China, and the relations between the HKSAR and the Chinese mainland are governed by the “one country, two systems” principle. The HKSAR’s legal system is underpinned by the principles of the rule of law and judicial independence.

The constitutional framework for the HKSAR’s legal system is provided by the Basic Law enacted by the National People’s Congress of the People’s Republic of China in accordance with Article 31 of China’s Constitution. The Constitution and the Basic Law together form the constitutional basis of the HKSAR. The HKSAR legal system is based on the common law, supplemented by statutes.

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When it comes to the Judiciary, as prescribed in the Basic Law, the HKSAR has been authorized by the NPC to exercise independent judicial power, including the power of final adjudication. It has also been expressly stated that Hong Kong courts shall exercise judicial power independently, free from any interference. Members of the Judiciary shall be immune from legal action in the performance of their judicial functions. As reflected in their judicial oath, in exercising their judicial power, judges are constitutionally required to determine and handle cases strictly in accordance with the law and legal principles.

However, while Hong Kong’s legal system may not be perfect (Perfection does not exist. As Spanish surrealist painter and printmaker Salvador Dali said, “Have no fear of perfection — you’ll never reach it.”), it is in a very good situation.

A couple of weeks ago, on Oct 23, the 2024 World Justice Project Rule of Law Index was published, with Hong Kong ranked 23rd out of the 142 jurisdictions surveyed (which is the same position it held in 2023). In the East Asia and Pacific region, Hong Kong was ranked sixth out of the 15 places surveyed (also the same position it held in 2023). It is worth noting that Hong Kong was ranked higher than many Western countries, including the United States (26th). Within the individual performance categories, Hong Kong did even better. While it was ranked 21st for “criminal justice”, it came in ninth for “order and security”, and sixth for “criminal investigation system”. Also, Hong Kong is ranked 10th in the “absence of corruption”. The World Justice Project, which describes itself as an “independent, multidisciplinary organization working to create knowledge, build awareness, and stimulate action to advance the rule of law worldwide”, has published annually since its Rule of Law Index, which is the world’s leading source for original, independent data on the rule of law.

The WJP defines the rule of law as a “durable system of laws, institutions, norms, and community commitment that delivers: accountability, just laws, open government, and accessible justice”. The Rule of Law Index assesses the extent to which countries/jurisdictions adhere to the rule of law in practice by examining eight factors; namely, constraints on government powers, absence of corruption, open government, fundamental rights, order and security, regulatory enforcement, civil justice and criminal justice.

Despite the criticisms repeatedly hurled at Hong Kong’s legal system over recent years, the city has consistently rated high in the WJP Rule of Law Index. The fact that the city stayed at 23rd globally this year indicates that Hong Kong’s rule-of-law situation hasn’t worsened over the past year since the introduction of national security laws.

Meanwhile, Hong Kong is very strong when it comes to alternative dispute resolution. Over the years, the Department of Justice of Hong Kong has been making every effort to enhance the city’s status as a leading center for international legal and dispute resolution services in the Asia-Pacific region, and a significant amount of well-respected international institutions have chosen to make Hong Kong their first global location outside their home jurisdictions, fostering Hong Kong’s development as one of the leading international legal and dispute resolution services hub in the Asia-Pacific region and beyond.

Hong Kong hosted the 2024 Hong Kong Arbitration Week from Oct 21-25, which is the most important arbitration event held in the city and one of the most important events globally of this kind, organized by the Hong Kong International Arbitration Centre (HKIAC). According to the 2021 International Arbitration Survey conducted by Queen Mary University of London and White & Case, the HKIAC is the third-most preferred and used arbitral institution worldwide.

On Oct 16, Hong Kong Chief Executive John Lee Ka-chiu delivered his 2024 Policy Address, in which he emphasized the goal of Hong Kong enhancing its status as a regional center for international legal and dispute resolution services.

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In this regard, Lee announced a series of measures such as stepping up promotion of mediation services (the International Organization for Mediation will have its headquarters set up in Hong Kong upon adoption and entry into force of the relevant international convention), developing a sports dispute resolution system and commencing training for international legal talent (the Hong Kong International Legal Talents Training Academy will be officially launched this year, ensuring legal professionals are familiar with international law, common law, civil law, national legal systems and other legal aspects).

To sum up, in the same way that Hong Kong’s economy is often cursed by critics, its legal system is also often criticized, and, in the same way that Hong Kong’s economy is actually faring much better than what the critics say, its legal system as a whole remains solid. Rule of law in Hong Kong remains robust, and its judiciary remains independent. Hong Kong can look forward to a bright future as one of the world’s most important financial hubs, and one of the cornerstones of this brilliant present and future is precisely the city’s legal system and its Judiciary.

The author is a fintech adviser, a researcher and a former business analyst for a Hong Kong publicly listed company.

The views do not necessarily reflect those of China Daily.