HKSAR and Mainland sign record of meeting concerning mutual recognition of and assistance to insolvency proceedings

On 14 May 2021, the Secretary for Justice, Ms Teresa Cheng, SC, and Vice-president of the Supreme People’s Court (SPC), Mr Yang Wanming, signed a record of meeting concerning mutual recognition of and assistance in relation to insolvency proceedings between the courts of the Mainland and the Hong Kong Special Administrative Region (HKSAR). Liquidators from Hong Kong will be able to apply to the Mainland courts for recognition of insolvency proceedings in Hong Kong and bankruptcy administrators from the Mainland will be able to apply to the High Court in Hong Kong for recognition of bankruptcy proceedings in the Mainland.

Some of the key developments to note from the meeting include the following:

1. The SPC will designate a number of pilot areas centring on Shanghai, Xiamen and Shenzhen given their close trade ties with Hong Kong and popularity with Hong Kong investors with the intention of gradually extending beyond these areas.
2. A set of opinions and a practical guide have been issued respectively by the SPC and the HKSAR Government in respect of their work on the matter.

Please refer to the Government’s press release for more details.

Key Contacts

Simon Deane

Consultant | Banking and Finance

Email or call +852 2825 9209