The Hong Kong-Mainland Interim Measures Arrangement in Practice

Summary

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• The reciprocal Hong Kong-mainland China interim measures arrangement allows parties in certain arbitral proceedings to apply directly to each other's respective courts to seek interim measures before a final award is made.
• The arrangement is a valuable tool for parties seeking to secure their rights in China.
• Perhaps unsurprisingly, the arrangement has already been used to secure assets worth hundreds of millions of dollars.
• Upcoming amendments to the PRC Arbitration Law will further strengthen parties' hands, thereby increasing the enforceability of interim measures in China.

The Arrangement Concerning Mutual Assistance in Court-Related Interim Measures in Aid of Arbitral Proceedings by the Courts of the Mainland and the Hong Kong SAR (the "Arrangement") came into force on October 1, 2019. This landmark agreement provides the means for parties in certain Hong Kong- seated arbitral proceedings, to apply directly to PRC courts to seek interim measures prior to the issue of a final arbitral award. The Arrangement operates both ways, meaning that a party in mainland China may also apply to the Hong Kong court for their respective interim measure request in Hong Kong, although this option was already available to parties in arbitrations outside of Hong Kong by virtue of Section 45 of the Hong Kong Arbitration Ordinance (Cap. 609). The Arrangement, which has now been in place for almost four years, has had a significant impact on the arbitration landscape in China by allowing parties in Hong Kong-seated arbitrations to seek interim relief on the mainland, thereby plugging a historic gap.

The Arrangement is important because an application for an interim measure, such as the freezing of assets, can have great significance at the enforcement stage of a successful award