
Hong Kong Mainland Interim Assistance Arrangements for Onshore Property Preservation
The 2019 Arrangement allows parties in Hong Kong institutional arbitrations to freeze Mainland assets ex-parte by securing local preservation insurance.
Judicial bodies within the people court system of the People’s Republic of China exercise jurisdiction over civil, criminal, and administrative matters through a hierarchical structure of local and intermediate levels. The mainland courts are organized under the unified leadership of the Supreme People’s Court, which serves as the highest judicial authority and provides interpretation of laws for the entire nation. This system is designed to provide a consistent application of the law across all provinces while handling a massive volume of cases from the domestic and international business sectors.
These courts operate under a civil law framework, where statutes and judicial interpretations are the primary sources of law, rather than binding precedents from previous cases. They are responsible for hearing trials, issuing judgments, and enforcing rulings through specialized enforcement bureaus. The role of these institutions has expanded significantly as the economy has grown, requiring more specialized chambers for intellectual property, finance, and maritime law.
This professionalization is necessary to meet the needs of a modern commercial society.
Organization of the mainland courts follows a four level hierarchy that determines where a case is first heard and how many levels of appeal are available. The Basic People’s Courts are at the lowest level and handle the vast majority of routine civil and criminal cases in counties and city districts. Above them are the Intermediate People’s Courts, which hear more significant cases, including many commercial disputes involving foreign parties, and act as the first court of appeal for the basic level.
The High People’s Courts sit at the provincial level and handle the most complex cases and second instance appeals. At the top of the pyramid is the Supreme People’s Court, which focuses on cases of national importance and the creation of judicial policy. This structure ensures that most disputes are resolved within two instances of trial, which is the standard rule for finality in the system.
Each level has its own specific jurisdictional limits based on the value of the claim and the nature of the parties involved. This clear division of labor allows for the efficient management of a large and diverse caseload.
Conduct of a trial in the mainland courts is characterized by an inquisitorial approach where the judge takes an active role in questioning witnesses and investigating the facts of the case. Unlike the adversarial system found in common law jurisdictions, the focus is on the court’s search for the objective truth rather than just the arguments presented by the lawyers. The trial process typically begins with the exchange of evidence and a series of pre-trial hearings to define the points of contention.
During the main hearing, the judge or a panel of three judges will review the documents, hear testimony, and allow the parties to debate the legal issues. The court has the power to order the production of evidence or to appoint its own experts to provide technical analysis. After the hearing, the court will issue a written judgment that explains the factual findings and the legal basis for the decision.
This emphasis on written documentation is a hallmark of the system, providing a clear record for any subsequent appeal or enforcement action. The efficiency of the adjudication process is a major priority for judicial reform efforts.
Carrying out the orders and judgments of the mainland courts is the responsibility of the specialized enforcement bureaus that operate at each level of the judicial system. These bureaus have broad powers to seize assets, freeze bank accounts, and restrict the activities of non-compliant debtors. They are the executive arm of the court, tasked with ensuring that the winning party actually receives the compensation or property awarded in the judgment.
In recent years, the enforcement system has become highly digitized, allowing officers to track the financial assets of defendants across the country through centralized databases. The bureaus also maintain a public list of dishonest judgment debtors, who are subject to travel restrictions and other social penalties to encourage compliance. If a debtor continues to hide assets, the enforcement bureau can initiate criminal proceedings for the crime of refusing to execute a court ruling.
This strong emphasis on execution is necessary to maintain the authority of the judicial system and the stability of the credit market. The effectiveness of these bureaus is the final test of the legal process for any litigant. Mainland courts remain the central pillars of the dispute resolution and enforcement landscape.

The 2019 Arrangement allows parties in Hong Kong institutional arbitrations to freeze Mainland assets ex-parte by securing local preservation insurance.
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