HKIAC receives 100th application under PRC-HK Interim Measures Arrangement

 

HKIAC has now received the 100th application under the PRC-Hong Kong Interim Measures Arrangement (Arrangement) since it came into force on 1 October 2019. Under the Arrangement, parties to Hong Kong-seated administered arbitrations can seek interim relief directly from Mainland Chinese courts.

 

Since the Arrangement entered into force, HKIAC has issued Letters of Acceptance in respect of 100 applications. 94 applications were made for the preservation of assets, two were for the preservation of evidence, and four were for the preservation of conduct. All applications were made in arbitrations that had already been commenced.

 

The total value of assets requested to be preserved amounted to RMB 25.1 billion or approximately USD 3.6 billion.

 

HKIAC is aware of 69 decisions issued by Mainland Courts. Of these 69 decisions, 65 granted the applications for preservation of assets upon the applicant’s provision of security and four rejected such an application. The total value of assets preserved by the 65 decisions amounted to RMB 15.8 billion or approximately USD 2.3 billion.

 

Since the Arrangement’s entry into force, applications have been made to 36 different Mainland Courts in the following cities: Beijing, Chongqing, Chuzhou, Chengdu, Shanghai, Shenzhen, Tianjin, Dalian, Dongying, Fuzhou, Guangzhou, Hangzhou, Huaian, Jinan, Kunming, Lianyungang, Nanjing, Qingdao, Quanzhou, Xiamen, Yantai, Yangzhou, Zhangzhou, Zhaoqing, Zhoushan, Zhuhai, Suzhou, and Wuhan.

 

Applicants are split approximately 19% Mainland Chinese/81% foreign parties. Respondents are split approximately 62.3% Mainland Chinese/37.7% foreign parties.

 

HKIAC’s role under the Arrangement is to certify that it administers the case in question. HKIAC issues such certification within 24 hours and at no charge. Based on the information available in respect of 50 of the 65 decisions issued by the Mainland Courts, the average time taken by Mainland Courts to issue a decision was 20.5 days from receipt of an Application. The median time was 13 days.

 

HKIAC Secretary-General, Dr Mariel Dimsey, commented, “The 100th application under the Arrangement is a milestone testament to its success and effectiveness for parties doing deals involving assets, conduct or evidence on the Mainland. It presents a significant commercial advantage for Hong Kong as a seat for arbitration and HKIAC as the institution with, by far, the most experience in processing applications under the Arrangement”.”

 

For further information, please visit the HKIAC HK-PRC Interim Measures Arrangement Frequently Asked Questions.