{"id":3983,"date":"2025-07-11T10:21:00","date_gmt":"2025-07-11T02:21:00","guid":{"rendered":"https:\/\/www.cfnlaw.com.hk\/strategic-advantages-under-the-interim-measures-arrangement-choosing-hong-kong-as-the-seat-of-arbitration\/"},"modified":"2025-07-11T10:21:00","modified_gmt":"2025-07-11T10:21:00","slug":"strategic-advantages-under-the-interim-measures-arrangement-choosing-hong-kong-as-the-seat-of-arbitration","status":"publish","type":"post","link":"https:\/\/www.cfnlaw.com.hk\/jp\/strategic-advantages-under-the-interim-measures-arrangement-choosing-hong-kong-as-the-seat-of-arbitration\/","title":{"rendered":"Strategic Advantages Under the Interim Measures Arrangement: Choosing Hong Kong as the Seat of Arbitration"},"content":{"rendered":"\n<section block=\"insights-detail-banner\" class=\"relative text-white overflow-hidden\">\n        <img decoding=\"async\" class=\"absolute top-0 left-0 w-full h-full object-cover\" src=\"https:\/\/www.cfnlaw.com.hk\/wp-content\/uploads\/2025\/12\/Image-16.png\" alt=\"\" \/>\n        <div class=\"absolute top-0 left-0 w-full h-full bg-[rgba(0,0,0,0.40)]\"><\/div>\n    <div class=\"container mx-auto relative\">\n        <div class=\"container-md py-[60px] md:py-20 text-center\">\n            <div class=\"max-w-[800px] mx-auto\">\n                <p class=\"mb-1 text-eyebrow font-georgia uppercase text-highlight-orange\">Article<\/p>\n                <h1 class=\"heading5 font-georgia\">Strategic Advantages Under the Interim Measures Arrangement: Choosing Hong Kong as the Seat of Arbitration<\/h1>\n                <p class=\"mt-[10px] text-body-sm\">2025 7\u670811\u65e5<\/p>\n            <\/div>\n        <\/div>\n    <\/div>\n<\/section>\n\n\n\r\n<section block=\"insights-detail-content\" class=\"container mx-auto relative pb-[30px] sm:pb-[40px] 2xl:pb-[60px] pt-[60px] sm:pt-20 2xl:pt-[100px]\">\r\n\r\n    <div class=\"container-sm flex flex-wrap lg:flex-nowrap gap-10 3xl:gap-14 5xl:gap-20\">\r\n        <div class=\"lg:flex-1 min-w-0\">\r\n            <div class=\"mb-[12px]\">\r\n                <a href=\"#\" id=\"zr-goback\" class=\"transition-all duration-300 hover:text-brand-purple text-black-80 text-body-md inline-flex items-center gap-[10px]\">\r\n                    <img decoding=\"async\" class=\"rotate-180 transition-all duration-300\" src=\"https:\/\/www.cfnlaw.com.hk\/wp-content\/themes\/cfn\/public\/images\/icons\/arrow-right.svg\" alt=\"arrow right\" \/>\r\n                    <span>Back<\/span>\r\n                <\/a>\r\n            <\/div>\r\n            <ul class=\"flex flex-wrap items-center text-body-md text-black-60\">\r\n                                                                                    <li class=\"text-black-40\">\r\n                                                            <a class=\"transition-all duration-300 hover:text-highlight-orange\" href=\"https:\/\/www.cfnlaw.com.hk\/\" target=\"_self\">Home<\/a>\r\n                                                    <\/li>\r\n\r\n                        <span class=\"mx-[10px] inline-block\">\r\n                            <img decoding=\"async\" src=\"https:\/\/www.cfnlaw.com.hk\/wp-content\/themes\/cfn\/public\/images\/icons\/arrow-right.svg\" alt=\"arrow right\" \/>\r\n                        <\/span>\r\n                        \r\n                        \r\n                                                                    <li class=\"text-black-40\">\r\n                                                            <a class=\"transition-all duration-300 hover:text-highlight-orange\" href=\"https:\/\/www.cfnlaw.com.hk\/insights-news\/\" target=\"_self\">Insights &amp; News<\/a>\r\n                                                    <\/li>\r\n\r\n                        <span class=\"mx-[10px] inline-block\">\r\n                            <img decoding=\"async\" src=\"https:\/\/www.cfnlaw.com.hk\/wp-content\/themes\/cfn\/public\/images\/icons\/arrow-right.svg\" alt=\"arrow right\" \/>\r\n                        <\/span>\r\n                        \r\n                        \r\n                                            \r\n                                                                                <li class=\"text-highlight-orange\">\r\n                                <span class=\"\">\r\n                                    Insights &#038; News Details                                <\/span>\r\n                            <\/li>\r\n                                                    \r\n                                                <\/ul>\r\n\r\n            <div class=\"mt-10 insights-detail-content\">\r\n                <p><span style=\"font-weight: 400;\">In an increasingly interconnected global economy, international commercial arbitration has emerged as the preferred mechanism for resolving cross-border disputes. Its advantages \u2014 neutrality, enforceability, and procedural flexibility \u2014 make it indispensable for businesses navigating complex commercial relationships.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">For businesses engaged in transactions with Mainland Chinese entities and designating arbitration as the dispute resolution mechanism, choosing the seat of arbitration (i.e., the jurisdiction in which an arbitration is deemed legally to take place and the award issued) is critical. Among international arbitration hubs, <\/span><b>Hong Kong stands apart<\/b><span style=\"font-weight: 400;\">, offering a unique advantage: the ability to obtain interim relief directly through Mainland courts under the \u201c<\/span><i><span style=\"font-weight: 400;\">Arrangement Concerning Mutual Assistance in Court-ordered Interim Measures in Aid of Arbitral Proceedings by the Courts of the Mainland and the Hong Kong Special Administrative Region\u201d<\/span><\/i><span style=\"font-weight: 400;\"> (\u201c<\/span><b>Interim Measures Arrangement<\/b><span style=\"font-weight: 400;\">\u201d) which came into force on 1 October 2019.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h6><b>What are \u201cinterim measures\u201d?<\/b><\/h6>\n<p><span style=\"font-weight: 400;\">Interim measures (or interim relief) are provisional orders issued by the court prior to the final determination of a dispute, with the aim to preserve the status quo, protect evidence, or prevent dissipation of assets during ongoing proceedings. In the case of Mainland China, interim measures include asset preservation, evidence preservation, and conduct preservation.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The availability of interim measures is essential to an effective dispute resolution process. These measures help preserve the value at stake in a dispute and ensure that the subsequent arbitral award remains enforceable and meaningful.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h6><b>How the Interim Measures Arrangement works<\/b><\/h6>\n<p><span style=\"font-weight: 400;\">Before the Interim Measures Arrangement came into force, it was practically very difficult for a party to apply to the Mainland courts for interim measures in support of arbitral proceedings seated outside Mainland China. The groundbreaking Interim Measures Arrangement allows parties in Hong Kong-seated arbitration administered by qualified arbitral institutions<\/span><span style=\"font-weight: 400;\"> [1] <\/span><span style=\"font-weight: 400;\">to seek interim measures from designated Mainland courts <\/span><span style=\"font-weight: 400;\">[2]<\/span><span style=\"font-weight: 400;\">, whether before the commencement of the arbitration or during the arbitration proceedings.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By way of illustration, any party to the arbitral proceedings seated in Hong Kong and administered by the Hong Kong International Arbitration Centre (HKIAC) under the relevant administration rules may apply to the designated Mainland court for interim measures under the Interim Measures Arrangement against a Mainland Chinese counterparty as follows:<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul style=\"list-style-type: disc; padding-left: 18px;\">\n<li aria-level=\"1\"><b>Before HKIAC accepts the arbitration, the requesting party shall submit its application to the designated Mainland court directly. If the court grants the application, the requesting party must commence an arbitration at HKIAC and submit a \u201cLetter of Acceptance\u201d to the court within 30 days after the interim measure is issued.<\/b><\/li>\n<li aria-level=\"1\"><b>After HKIAC accepts the arbitration, the requesting party shall request a \u201cLetter of Acceptance\u201d from HKIAC together with all relevant documents, such as a draft application for interim measures to the designated Mainland court.<\/b><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">The \u201cLetter of Acceptance\u201d refers to a formal letter issued by HKIAC addressed to the designated Mainland court certifying HKIAC\u2019s acceptance of an arbitration for the purposes of the Interim Measures Arrangement.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h6><b>HKIAC: Key Statistics of the Interim Measures Arrangement<\/b><\/h6>\n<p><span style=\"font-weight: 400;\">Since the Interim Measures Arrangement came into force:<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><b><\/b><\/p>\n<ul style=\"list-style-type: disc; padding-left: 18px;\">\n<li aria-level=\"1\"><b>HKIAC issues Letters of Acceptance within 24 hours of receipt of a complete application;<\/b><\/li>\n<li aria-level=\"1\"><b>HKIAC has issued Letters of Acceptance in respect of 144 applications. All applications were made in arbitration proceedings that had already been commenced;<\/b><\/li>\n<li aria-level=\"1\"><b>Over 70% of the parties applying for interim measures are non-Mainland parties;<\/b><\/li>\n<li aria-level=\"1\"><b>Applications for interim measures were made to 44 different Mainland courts;<\/b><\/li>\n<li aria-level=\"1\"><b>Based on the information available, the average time taken by Mainland courts to issue a decision was 26 days from receipt of an application (the median time was 17 days);<\/b><\/li>\n<li aria-level=\"1\"><b>HKIAC is aware of 101 decisions issued by Mainland courts. In 96 of these decisions, the applications for preservation of assets were granted upon the applicant\u2019s provision of security;<\/b><\/li>\n<li aria-level=\"1\"><b>The total value of assets requested to be preserved amounted to RMB 35 billion (approximately USD 4.7 billion).<\/b><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h6><b>Practical Advantages for Businesses<\/b><\/h6>\n<p><span style=\"font-weight: 400;\">By virtue of the Interim Measures Arrangement, <\/span><b>Hong Kong is the only international arbitration hub<\/b><span style=\"font-weight: 400;\"> and one of the two jurisdictions (the other being Macau SAR) where parties can obtain interim measures directly through the Mainland courts. Coupled with the \u201c<\/span><i><span style=\"font-weight: 400;\">Supplemental Arrangement Concerning Mutual Enforcement of Arbitral Awards between China Mainland and Hong Kong<\/span><\/i><span style=\"font-weight: 400;\">\u201d which came into force on 19 May 2021 (\u201c<\/span><b>Supplemental Arrangement<\/b><span style=\"font-weight: 400;\">\u201d), Hong Kong-seated arbitration proceedings offer unique advantages to parties in ensuring effective enforcement of the arbitral award. By virtue of the Supplemental Arrangement:<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<ul style=\"list-style-type: disc; padding-left: 18px;\">\n<li aria-level=\"1\"><b><i>simultaneous enforcement<\/i><\/b><b>: parties may enforce the arbitral award simultaneously in Hong Kong and Mainland China, avoiding delays and time-bar risks (the time limit for enforcing an arbitral award is 2 years under Mainland Chinese law and 6 years under Hong Kong law);\u00a0<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b><i>post-award preservation measures<\/i><\/b><b>: since preservation orders granted under the Interim Measures Arrangement are not applicable after the arbitral award is issued, the Supplemental Arrangement fills in the gap by empowering the Mainland courts to grant post-award preservation measures upon application.<\/b><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">To fully utilise the advantages above, businesses are advised to designate Hong Kong as the seat of arbitration and one of the qualified arbitral institutions to administer the arbitration proceedings in the relevant arbitration clause.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h6><b>Conclusion<\/b><\/h6>\n<p><span style=\"font-weight: 400;\">Under the Interim Measures Arrangement, Hong Kong-seated arbitration offers unique advantages to Claimants to swiftly secure interim measures in Mainland China \u2014 a jurisdiction historically challenging for foreign parties to navigate.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As economic activities between other countries and Mainland China continue to grow, integrating Hong Kong-seated arbitration clauses into contracts would be beneficial to businesses to secure assets before or during the arbitral proceedings and to ensure effective enforcement upon issuance of the arbitral award.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><b>CFN Lawyers LLP<\/b><span style=\"font-weight: 400;\">, with its expertise in international arbitration and a proven track record of helping clients navigate the complex cross-border legal landscape, is well equipped to assist you in international arbitration proceedings involving Mainland Chinese counterparties and securing your interests through interim measures and enforcement of arbitral awards, as well as advising you on the choice of a suitable arbitration clause and its legal implications.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>Footnotes:<\/b><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">[1] \u201c<\/span><i><span style=\"font-weight: 400;\">Qualified arbitral institutions<\/span><\/i><span style=\"font-weight: 400;\">\u201d refer to:<\/span><\/p>\n<ul style=\"list-style-type: disc; padding-left: 18px;\">\n<li aria-level=\"1\"><b>Hong Kong International Arbitration Centre;<\/b><\/li>\n<li aria-level=\"1\"><b>Hong Kong Maritime Arbitration Group;<\/b><\/li>\n<li aria-level=\"1\"><b>South China International Arbitration Center (HK);<\/b><\/li>\n<li aria-level=\"1\"><b>eBRAM International Online Dispute Resolution Centre;<\/b><\/li>\n<li aria-level=\"1\"><b>AALCO Hong Kong Regional Arbitration Centre;<\/b><\/li>\n<li aria-level=\"1\"><b>China International Economic and Trade Arbitration Commission Hong Kong Arbitration Center; and<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>International Court of Arbitration of the International Chamber of Commerce \u2013 Asia Office.<\/b><b><i><br \/>\n<\/i><\/b><b><i>\u00a0<\/i><\/b><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">[2] The Intermediate People\u2019s Court of the place of residence of the Respondent or the place where the property or evidence is situated.<\/span><\/p>\n            <\/div>\r\n        <\/div>\r\n        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href=\"https:\/\/www.cfnlaw.com.hk\/jp\/elevating-corporate-governance-aml-and-anti-corruption-strategies-by-kelvin-li-of-cfn-lawyers-llp\/\" class=\"p-5 block h-full group bg-white shadow-[0_0_40px_0_rgba(0,0,0,0.10)]\">\r\n                    <div class=\"block overflow-hidden\">\r\n                                                <img decoding=\"async\" class=\"w-full object-cover aspect-[3\/1.4] group-hover:scale-[1.1] transition-all duration-300\" src=\"https:\/\/www.cfnlaw.com.hk\/wp-content\/uploads\/2025\/11\/Image-28.png\" alt=\"\" \/>\r\n                                            <\/div>\r\n                    <div class=\"mt-5\">\r\n                                                    <span class=\"uppercase text-white inline-flex justify-center items-center text-eyebrow font-georgia p-[10px]\"\r\n                                style=\"color: #ffffff; background-color: #333333\">News<\/span>\r\n                                            <\/div>\r\n                    <h6 class=\"mt-[10px] group-hover:text-brand-purple group-hover:underline underline-offset-2 transition-all duration-300 heading6 font-georgia overflow-hidden line-clamp-2\">\r\n                        Elevating Corporate Governance: AML and Anti-Corruption Strategies by Kelvin Li of CFN Lawyers LLP                    <\/h6>\r\n                    <div class=\"mt-5 text-body-md text-black-80 overflow-hidden line-clamp-3 text-ellipsis\">\r\n                        On November 11 2025, Kelvin Li, partner of CFN Lawyers LLP, was invited to deliver a keynote lecture at the \u201cCorporate Governance\u2014Anti-Corruption Advocacy Training\u201d seminar hosted by Roma Risk Advisory Limited. Drawing upon his extensive legal practice experience and deep understanding of corporate compliance, Kelvin provided a comprehensive and insightful presentation on Anti-Money Laundering (AML) and corporate anti-corruption risk prevention.\n                    <\/div>\r\n                <\/a>\r\n\r\n            \r\n                <a href=\"https:\/\/www.cfnlaw.com.hk\/jp\/when-ip-enforcement-strategies-collide-navigating-the-east-west-divide\/\" class=\"p-5 block h-full group bg-white shadow-[0_0_40px_0_rgba(0,0,0,0.10)]\">\r\n                    <div class=\"block overflow-hidden\">\r\n                                                <img decoding=\"async\" class=\"w-full object-cover aspect-[3\/1.4] group-hover:scale-[1.1] transition-all duration-300\" src=\"https:\/\/www.cfnlaw.com.hk\/wp-content\/uploads\/2025\/11\/Image-28.png\" alt=\"\" \/>\r\n                                            <\/div>\r\n                    <div class=\"mt-5\">\r\n                                                    <span class=\"uppercase text-white inline-flex justify-center items-center text-eyebrow font-georgia p-[10px]\"\r\n                                style=\"color: #ffffff; background-color: #9351a0\">Legal Lens<\/span>\r\n                                            <\/div>\r\n                    <h6 class=\"mt-[10px] group-hover:text-brand-purple group-hover:underline underline-offset-2 transition-all duration-300 heading6 font-georgia overflow-hidden line-clamp-2\">\r\n                        When IP Enforcement Strategies Collide: Navigating the East-West Divide                    <\/h6>\r\n                    <div class=\"mt-5 text-body-md text-black-80 overflow-hidden line-clamp-3 text-ellipsis\">\r\n                        Picture this: a technology company has meticulously registered its intellectual\nproperty across major markets \u2014 France, Japan, China, and Hong Kong.\n                    <\/div>\r\n                <\/a>\r\n\r\n            \r\n                <a href=\"https:\/\/www.cfnlaw.com.hk\/jp\/streamlined-moves-stronger-hub-insights-on-hong-kongs-re-domiciliation-regime\/\" class=\"p-5 block h-full group bg-white shadow-[0_0_40px_0_rgba(0,0,0,0.10)]\">\r\n                    <div class=\"block overflow-hidden\">\r\n                                                <img decoding=\"async\" class=\"w-full object-cover aspect-[3\/1.4] group-hover:scale-[1.1] transition-all duration-300\" src=\"https:\/\/www.cfnlaw.com.hk\/wp-content\/uploads\/2025\/11\/Image-27.png\" alt=\"\" \/>\r\n                                            <\/div>\r\n                    <div class=\"mt-5\">\r\n                                                    <span class=\"uppercase text-white inline-flex justify-center items-center text-eyebrow font-georgia p-[10px]\"\r\n                                style=\"color: #ffffff; background-color: #333333\">News<\/span>\r\n                                            <\/div>\r\n                    <h6 class=\"mt-[10px] group-hover:text-brand-purple group-hover:underline underline-offset-2 transition-all duration-300 heading6 font-georgia overflow-hidden line-clamp-2\">\r\n                        Streamlined Moves, Stronger Hub: Insights on Hong Kong\u2019s Re-domiciliation Regime                    <\/h6>\r\n                    <div class=\"mt-5 text-body-md text-black-80 overflow-hidden line-clamp-3 text-ellipsis\">\r\n                        We are delighted to share that Mr. Patrick Wong, partner of CFN Lawyers LLP, invited by Asian Legal Business (ALB), published an analytical article \u201cHong Kong looks to level up with re-domiciliation regime\u201d.\n                    <\/div>\r\n                <\/a>\r\n\r\n                    <\/div>\r\n    <\/div>\r\n\r\n<\/section>\r\n","protected":false},"excerpt":{"rendered":"<p>In an increasingly interconnected global economy, international commercial arbitration has emerged as the preferred mechanism for resolving cross-border disputes. Its advantages \u2014 neutrality, enforceability, and procedural flexibility \u2014 make it indispensable for businesses navigating complex commercial relationships.<\/p>\n","protected":false},"author":1,"featured_media":3818,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[36],"tags":[],"class_list":["post-3983","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legal-lens"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.cfnlaw.com.hk\/jp\/wp-json\/wp\/v2\/posts\/3983","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cfnlaw.com.hk\/jp\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cfnlaw.com.hk\/jp\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cfnlaw.com.hk\/jp\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cfnlaw.com.hk\/jp\/wp-json\/wp\/v2\/comments?post=3983"}],"version-history":[{"count":0,"href":"https:\/\/www.cfnlaw.com.hk\/jp\/wp-json\/wp\/v2\/posts\/3983\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.cfnlaw.com.hk\/jp\/wp-json\/wp\/v2\/media\/3818"}],"wp:attachment":[{"href":"https:\/\/www.cfnlaw.com.hk\/jp\/wp-json\/wp\/v2\/media?parent=3983"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cfnlaw.com.hk\/jp\/wp-json\/wp\/v2\/categories?post=3983"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cfnlaw.com.hk\/jp\/wp-json\/wp\/v2\/tags?post=3983"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}