The Arbitration and Mediation Legislation (Third Party Funding)(Amendment) Ordiance has removed the obstacles to the legalization of the third party funding arbitration. The Code of Practice for Third Party Funding of Arbitration sets out the practice and standards for the third party funding. The relevant provisions follow a light touch regulatory route. The relevant content is rather comprehensive, which protects the funded party and safeguards the healthy development of the third party funding industry and helps to enhance the competitiveness of Hong Kong as the world’s international arbitration center. In the meanwhile, the legislator also provides sufficient space for the future development of the third party funding arbitration. All of them have great enlightenment and reference to the mainland China. In view of the practice of third party funding arbitration and the inevitable development trend of third party funding arbitration, the amendment of Arbitration Law should first clearly recognize its legitimate status in legislation, and then concretize and institutionalize it through judicial interpretation and arbitration rules.