Plaintiff bank loaned to Defendant shipping company for construction of a new bulk carrier. Other Defendants, being shareholders of the shipping company, provided personal guarantees to the bank. The loan agreement and guarantees were both subject to the laws of HKSAR, and the guarantees were neither approved by nor registered with the State Administration of Foreign Exchange of China. The shipping company defaulted the loan agreement. The bank arrested and auctioned the bulk carrier in Singapore to recover part of its losses. Then, the bank filed a lawsuit in the court to claim the remaining principal, interest, default interest and fees against the shipping company and guarantors. The court honoured the parties’ choice of the laws of HKSAR in the loan agreement and guarantees, and applied the same to support the bank’s claims. The court held that though the current law required the guarantees to be approved by or registered with the administrative authority, they would not be invalid merely because of non-approval or non-registration. It also held that the bank’s actions in Singapore were lawful and proper.