Meaning
Judicial protocol that allows parties in Hong Kong arbitral proceedings to seek interim measures from Mainland Chinese courts. The Hong Kong interim measures arrangement provides a mechanism for asset freezing and conduct preservation to prevent a respondent from dissipating assets in the Mainland. It applies only to arbitrations seated in Hong Kong and administered by specific recognized institutions.
Application Submission
Application submission happens through the arbitration center, which forwards the request to the relevant Intermediate People’s Court. The Hong Kong interim measures arrangement requires the claimant to provide evidence of the necessity of the measure. Mainland judges then apply their own procedural laws to decide if the request should be granted.
Asset Preservation
Asset preservation represents the most frequent use of this cross-border tool. Before this Hong Kong interim measures arrangement existed, parties often found that Mainland assets had vanished by the time an award was issued. Now, a party can secure bank accounts or real estate at the start of the dispute.
This greatly increases the likelihood of a successful recovery once the final award is rendered.
Regional Exclusivity
Regional exclusivity limits the benefit of this arrangement to cases tied to the special administrative region. The Hong Kong interim measures arrangement does not extend to ad hoc arbitrations. It remains a unique bridge between the two legal systems.
