Mutual Recognition of and Assistance to Bankruptcy (Insolvency) Proceedings between the Mainland Courts and the Hong Kong Courts
ISSUING AUTHORITIES:
Supreme People's Court (the “SPC”) and Government of the Hong Kong Special Administrative Region (the “HKSAR Government”)
DATE OF ISSUANCE:
May 14, 2021
On May 14, 2021, the SPC and the HKSAR Government signed the Record of Meeting of the SPC and the HKSAR Government on Mutual Recognition of and Assistance to Bankruptcy (Insolvency) Proceedings between the Courts of the Mainland and of the HKSAR (the “Record of Meeting”).
The arrangement in the Record of Meeting provides that liquidators from Hong Kong may apply to the Mainland courts for recognition of insolvency proceedings in Hong Kong. Likewise, administrators in Mainland bankruptcy proceedings may apply to the Hong Kong High Court for recognition of bankruptcy proceedings in the Mainland.
Intermediate People’s Courts in pilot areas designated by the SPC may initiate cooperation with the Hong Kong courts on mutual recognition of and assistance to bankruptcy (insolvency) proceedings. Initially, Shanghai, Xiamen and Shenzhen have been designated as pilot cities.
The SPC and the HKSAR Government have respectively issued an opinion and a practical guide specifying the respective procedures and requirements for an application for recognition and assistance.
The new arrangement facilitates the rescue of financially troubled companies and provides better protection of the assets of debtor companies as well as the interests of the creditors. Hence, the arrangement is conducive to promoting an orderly and efficient insolvency regime. In the long run, the arrangement will give additional assurance to investors and further improve business environments in Hong Kong and the Mainland.
References:
Mainland Judgments in Matrimonial and Family Cases (Reciprocal Recognition and Enforcement) Ordinance
ISSUING AUTHORITY:
Government of the Hong Kong Special Administrative Region
DATE OF ISSUANCE:
May 14, 2021
On May 14, 2021, the Mainland Judgments in Matrimonial and Family Cases (Reciprocal Recognition and Enforcement) Ordinance (the “Ordinance”) was gazetted, giving effect to the “Arrangement on Reciprocal Recognition and Enforcement of Civil Judgments in Matrimonial and Family Cases by the Courts of the Mainland and of the Hong Kong Special Administrative Region” signed between the HKSAR Government and the Supreme People’s Court on June 20, 2017.
The Ordinance covers three main parts: (1) recognition and enforcement in Hong Kong of Mainland judgments, (2) recognition in Hong Kong of Mainland divorce certificates and (3) facilitation of recognition and enforcement in the Mainland of Hong Kong judgments.
(1) Recognition and enforcement in Hong Kong of Mainland judgments
A party to a Mainland judgment given in a matrimonial or family case may make a registration application to the Hong Kong District Court for three main types of specified orders:
● care-related orders concerning child custody, guardianship and access;
● status-related orders concerning divorce, annulment of marriage and parentage; and
● maintenance-related orders concerning child and spousal maintenance and division of property.
(2) Recognition in Hong Kong of Mainland divorce certificates
A party to a Mainland divorce certificate may apply to the Hong Kong District Court for the certificate to be recognised.
(3) Facilitation of recognition and enforcement in the Mainland of Hong Kong judgments.
A party to a Hong Kong judgment given in a matrimonial or family case may apply to the relevant Hong Kong court for the issuance of a certified copy of the judgement and a certificate certifying that the judgement is given in a matrimonial or family case and is effective in Hong Kong.
By reducing the need to re-litigate the same disputes, the Ordinance will help save time and reduce costs and emotional distress of parties to cross-border marriages.
Reference:
HKMA Announced Details of the Green and Sustainable Finance Grant Scheme
ISSUING AUTHORITY:
Hong Kong Monetary Authority (the “HKMA”)
DATE OF ISSUANCE:
May 4, 2021
On May 4, 2021, the HKMA published the Guideline on the Green and Sustainable Finance Grant Scheme (the “Scheme”). The Scheme consolidates Hong Kong’s existing Pilot Bond Grant Scheme and Green Bond Grant Scheme into one new scheme to provide subsidy for eligible bond issuers and loan borrowers to cover their expenses on bond issuance and external review services.
For general bond issuance costs, the Scheme subsidises expenses incurred by first-time green and sustainable bond issuers, for example legal, audit, arrangement and listing fees. The grant amount for each bond issuance is equivalent to half of the eligible expenses and is up to HK$2,500,000.
For external review costs, the Scheme subsidises transaction-related external review fees for eligible first-time and repeat green and sustainable bond issuers and loan borrowers, including fees for both pre-issuance and post-issuance external review. The grant amount for each bond issuance or loan is equivalent to the full cost of eligible expenses and is up to HK$800,000.
The Scheme has commenced on May 10, 2021 and will last for three years.
The launch of the Scheme will support green and sustainable bond issuance and lending in Hong Kong, further enrich the green and sustainable finance ecosystem in Hong Kong and ultimately strengthen Hong Kong’s position as a regional green and sustainable finance hub.
Reference:
Guideline on the Green and Sustainable Finance Grant Scheme
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