Hong Kong's Investment Promotion and Protection Agreements (IPPAs)
Hong Kong has been endeavouring to sign IPPAs with foreign economies in order to enhance two-way investment flows and boost our economy. An IPPA is an agreement between governments for the promotion and protection of investments made by investors of one contracting party in the area of the other contracting party.
Hong Kong's IPPAs give additional assurance to overseas investors that their investments in Hong Kong are protected, and enable Hong Kong investors to enjoy similar protection in respect of their investments overseas.
A typical IPPA provides for, among others, the following:
fair and equitable treatment of investments;
full protection and security of investments;
non-discriminatory treatment of investments;
non-discriminatory treatment in compensation for losses owing to, among others, war or other armed conflict;
compensation for expropriation of investments;
free transfer abroad of investments and returns;
settlement of investment disputes between a contracting party and an investor of another contracting party; and
settlement of disputes between the contracting parties on interpretation or application of the IPPA.
Hitherto, Hong Kong has signed 18 IPPAs.