The courts of the Chinese mainland and the Hong Kong Special Administrative Region (HKSAR) may recognize and enforce reciprocally effective judgments in civil and commercial matters after a new arrangement came into effect on Monday.

The Mainland Judgments in Civil and Commercial Matters (Reciprocal Enforcement) Ordinance and the Arrangement on Reciprocal Recognition and Enforcement of Judgments in Civil and Commercial Matters by the Courts of the Mainland and of the Hong Kong Special Administrative Region (HKSAR) came into operation on Monday.

The new mechanism will significantly enhance the demand of parties outside the jurisdiction to choose Hong Kong courts for resolving cases related to the Chinese mainland, said Vice President of the Supreme People's Court (SPC) Yang Wanming at a seminar held Monday in Hong Kong about the arrangement. 

Under the new mechanism, more than 90 percent of civil and commercial judgements are expected to be recognized and enforced by both sides, which will reduce the burdens of repeated lawsuits for people, Yang said. 

It will stimulate the expectations of mainland enterprises to choose Hong Kong as a platform for "going global" cooperation, and add momentum to the development of Hong Kong as an international legal and dispute resolution service center in the Asia-Pacific region, Yang said.

Paul Lam, secretary for justice of the HKSAR government, said the arrangement showcases the unique advantages enjoyed by Hong Kong under "one country, two systems."

It helps consolidate Hong Kong's status as a regional intellectual property trading center as well as a regional center for international legal and dispute resolution services as outlined in the 14th Five-Year Plan, Lam said.

The seminar was co-organized by the SPC and the HKSAR government's Department of Justice, attracting about 300 participants on-site.