June, 2019 - China and Hong Kong: mutual recognition of asset preservation orders in arbitration
- Date: 24/06/2019
Hong Kong and China have entered into a new mutual agreement whereby parties engaged in arbitration in one jurisdiction may take steps to preserve assets of their counterpart in the other jurisdiction by way of interim relief. This is likely to provide litigants with a useful additional method of securing assets in advance of an award.
On 2nd April, 2019, the Hong Kong Government and the Supreme People’s Court of China signed the “Arrangement Concerning Mutual Assistance in Court-ordered Interim Measures in Aid of Arbitral Proceedings by the Courts of the Mainland and of the Hong Kong Special Administrative Region” (“Arrangement”). The effective date of the Arrangement is expected to be announced shortly. Hong Kong and the People’s Republic of China (“PRC”) already have six legal assistance arrangements, including the enforcement of court judgements and awards.