In addition to arbitration and mediation, SCIAHK provides professional, structured and confidential negotiation facilitation services to help parties consult, build consensus, resolve disputes or reach agreement on matters under negotiation.
Under the Negotiation Facilitation Rules of SCIAHK, the service covers corporate governance, debt restructuring, securities, futures and investment funds, construction and urban renewal, intellectual property, maritime and shipping, international investment and international trade, as well as other suitable matters. Parties may first conduct consultations themselves; where necessary, a Panel of Negotiation Experts may lead the process. A signed agreement is binding on its signatories and may, where permitted by law, be converted into a consent award.
The Rules hereunder (the “Rules”) are enacted to regulate negotiation facilitation, clarify the negotiation facilitation procedures and facilitate the parties to settle their disputes or agree upon issues for negotiation in a prompt and friendly manner.
The facilitation of negotiations shall be governed by the principles of voluntariness, equality and confidentiality.
When the parties agree to submit the disputes or any other issues for negotiation to the South China International Arbitration Center (HK) (the “SCIAHK”), or if the parties have de facto participated in the negotiation facilitation procedures at the SCIAHK, the parties are deemed to have agreed to apply the Rules.
If the parties have agreed otherwise on the negotiation facilitation, their agreed rules shall apply.
The disputes or any other issues for negotiation under the Rules include but are not limited to disputes or issues concerning:
Any party from any dispute or issue under Article 4 of the Rules is entitled to submit an application to the SCIAHK to initiate the negotiation facilitation procedures.
The parties shall submit a Negotiation Facilitation Application when they apply to initiate negotiation facilitation procedures at the SCIAHK. The Negotiation Facilitation Application shall include a brief introduction, the relevant laws and regulations, all parties and their agents’ contact information and other related documents.
Upon acceptance of an unilateral application for negotiation facilitation, the SCIAHK shall, within a reasonable amount of time after the application, send a copy of the Rules and other relevant documents to all other parties in an appropriate manner and request if they would consent to participate in the negotiation procedures.
The SCIAHK may also directly intervene in the negotiated issues in an appropriate manner based upon one party’s unilateral application.
If multiple parties apply to initiate the negotiation facilitation procedures, the SCIAHK shall, within a reasonable amount of time upon acceptance of the negotiation facilitation application and in an appropriate manner, send the relevant documents to all other parties and invite them to participate in the negotiation facilitation procedures.
After the official commencement of the negotiation facilitation procedures, the SCIAHK may set a certain period as the consultation period in accordance with the circumstances of the dispute or the issue for negotiation. During the consultation period, parties may hold private consultations among themselves and the SCIAHK shall provide the necessary facilities and assistance for the consultations.
If the parties consider it unnecessary to continue with the consultation, or if the parties fail to reach an agreement upon the expiration of the consultation period, the SCIAHK shall initiate the negotiation facilitation procedures held by the appointed expert(s)
Based upon the actual needs of negotiation facilitation, the parties may jointly select one or more negotiation expert(s) to form a panel of negotiation experts (the “panel”). If the parties fail to make the joint selection, the negotiation experts shall be appointed by the SCIAHK. The SCIAHK may also form work groups to facilitate the negotiations independently or to assist the panel, or in any other appropriate manners.
The SCIAHK may stipulate a name list of negotiation experts or provide the parties with a recommended name list of negotiation experts.
The Panel shall promptly and proactively disclose to the SCIAHK and the parties any situation that may affect his or her independence or impartiality.
Before the negotiation facilitation of the Panel commences, the parties may challenge the negotiation expert(s). The SCIAHK has the authority to decide on the challenge.
A negotiation expert shall be replaced in accordance with Article 9 of the Rules if he/she becomes unable to fulfill his/her functions due to being challenged or other reasons, unless otherwise agreed by all parties.
Once formed, the Panel may resort to approaches it considers beneficial for the parties to reach a consensus. The Panel may:
Upon reaching a consensus, the parties shall draw up a negotiation agreement hosted by the Panel. The duly executed negotiation agreement shall take immediate legal effect and be binding on all signatories, unless otherwise agreed by all parties.
Once the parties have reached a negotiation agreement, if the laws of the seat of arbitration do not disallow such practice, any party may make the negotiation agreement enforceable by invoking the arbitration clause in the negotiation agreement and applying to SCIAHK to render a consent award in accordance with the content of the negotiation agreement.
Where any party declares in writing its withdrawal from the negotiation facilitation procedures, only that party shall withdraw from the negotiation facilitation procedures, without affecting the continuation of the negotiation facilitation procedures by the other parties.
The pending negotiation facilitation procedures shall be terminated if any of the following circumstances occurs:
Unless otherwise agreed by the parties or subject to the actual needs, the negotiation facilitation procedures shall not be open to the public.
The experts, parties and their agents, staff of the SCIAHK and other persons involved in the negotiation facilitation procedures shall be obligated to keep the negotiation confidential, unless otherwise agreed by the parties or otherwise provided by law.
The parties shall pay the negotiation facilitation fees in advance within a period specified from the date of receipt of the notice of payment issued by the SCIAHK. In principle, the applicant shall pay the negotiation facilitation fees in advance. The SCIAHK may determine which party to prepay the negotiation facilitation fees according to actual situations. The parties' agreement on the proportion of the payment shall prevail.
The parties shall pay the negotiation facilitation fees and costs in accordance with the List of Fees attached.
If an agreement or arrangement is made for third party funding or insurance, the funded or insured party shall notify in writing all other parties, the Panel and the SCIAHK of this fact as soon as possible and provide the name of the third party funder or insurer. Any changes to this information shall also be disclosed as soon as possible.
Third party funded negotiation facilitation procedures may refer to the procedures under the Rules.
In the course of third party funded negotiation facilitation, the funder shall not be any party in the negotiation facilitation procedures, unless otherwise agreed by all the parties in writing.
No party shall invoke any statement, self-admission, view, opinion, recommendation or feasibility report presented by any other party or negotiation expert in the course of negotiation facilitation as a basis to support its claims in any subsequent arbitration procedures, judicial process or any other proceedings.
A negotiation expert shall not be an arbitrator, agent of a party or witness in any other arbitration or litigation proceeding concerning the identical or related disputed facts, unless otherwise agreed by all the parties in writing.
Save for intentional wrongdoing, the parties waive, to the fullest extent permitted under the applicable law, any claim against the SCIAHK, its staff, the negotiation experts, and any person appointed or engaged by the SCIAHK or the negotiation experts, based on any act or omission in connection with the negotiation facilitation.
The Rules shall be effective as from 31 August 2026 and shall be interpreted by the SCIAHK.
| Amount in Dispute (HKD) | Institutional Fees (HKD) | Remuneration for Negotiation Expert (HKD) |
| ≦500,000 | 1,000 | 6,000 |
| 500,001 - 1,000,000 | 1,000 + 0.2% of those exceeding 500,000 | 6,000 + 0.2% of those exceeding 500,000 |
| 1,000,001 - 5,000,000 | 2,000 + 0.12% of those exceeding 1,000,000 | 7,000 + 0.13% of those exceeding 1,000,000 |
| 5,000,001 - 10,000,000 | 6,800 + 0.04% of those exceeding 5,000,000 | 12,200 + 0.07% of those exceeding 5,000,000 |
| 10,000,001 - 50,000,000 | 8,800 + 0.03% of those exceeding 10,000,000 | 15,700 + 0.06% of those exceeding 10,000,000 |
| 50,000,001 - 100,000,000 | 20,800 + 0.02% of those exceeding 50,000,000 | 39,700 + 0.05% of those exceeding 50,000,000 |
| 100,000,001 - 500,000,000 | 30,800 + 0.015% of those exceeding 100,000,000 | 64,700 + 0.02% of those exceeding 100,000,000 |
| 500,000,001 - 1,000,000,000 | 90,800 + 0.014% of those exceeding 500,000,000 | 144,700 + 0.015% of those exceeding 500,000,000 |
| 1,000,000,001 - 3,000,000,000 | 160,800 + 0.001% of those exceeding 1,000,000,000 | 219,700 + 0.01% of those exceeding 1,000,000,000 |
| ≧3,000,000,001 | 180,800 | 419,700 |
