Justice Secretary Paul Lam has hailed as an important milestone the start of a new arrangement allowing Hong Kong and the mainland to recognise and enforce each other's judgments in civil and commercial court cases

The move was agreed by the SAR and the Supreme People's Court in 2019 but only came into effect on Monday.

At a seminar, Lam noted that Hong Kong is the only jurisdiction with such an agreement with the mainland.

"The arrangement is advantageous because it's beneficial to the business community and other people involved in civil and commercial disputes involving cross-border elements," he said.

"This will be conducive to enhance Hong Kong's status as an international legal service and dispute resolution services centre. It may also make investors and businesspeople from other countries more ready to explore investment and business opportunities in the mainland."

At the same event, Supreme People's Court vice-president Yang Wanming said the signing of nine agreements in total between the SAR and the mainland provides for full coverage of mutual legal assistance regarding civil and commercial issues.

"The new mechanism between the mainland and the SAR creates a new practice and a new chapter for One Country, Two Systems," Yang said.

"We hope the judicial and legal sectors on either side of the border can treat the new regime as a new starting point, keep pushing developments of the interface of rules, make judicial ties within the country more inclusive and with more mutual trust."