Hong Kong and Mainland Sign Record of Meeting Concerning Mutual Recognition of Insolvency Proceedings

Secretary for Justice of Hong Kong Teresa Cheng and Vice-president of the Supreme People's Court Yang Wanming signed the record of meeting concerning mutual recognition of and assistance to insolvency proceedings between the courts of the Mainland and the Hong Kong Special Administrative Region in Shenzhen on 14 May. Cheng said that the record of meeting signified the consensus on the mutual recognition of and assistance to insolvency proceedings between the two places. Liquidators from Hong Kong may apply to Mainland courts for recognition of insolvency proceedings in Hong Kong. Likewise, bankruptcy administrators from the Mainland may apply to the High Court in Hong Kong for recognition of bankruptcy proceedings in the Mainland. The framework facilitates the rescue of financially troubled businesses, and provides better protection of the assets of the debtor company as well as the interests of the creditors, and is conducive to the promotion of an orderly and efficient insolvency regime.

The Supreme People's Court has initially designated Shanghai, Xiamen and Shenzhen as pilot cities where the relevant Intermediate People's Courts and HKSAR courts will commence the work on mutual recognition of and assistance in insolvency proceedings in accordance with the laws.

Source: The Government of the Hong Kong Special Administrative Region