[Direct answer]In the Beijing area, judgments from Hong Kong courts can be applied for recognition and enforcement in mainland China. According to the "Arrangement on the Mutual Recognition and Enforcement of Civil and Commercial Judgments between the Courts of the Mainland and the Hong Kong Special Administrative Region" (effective from January 29, 2024), eligible civil and commercial judgments from Hong Kong can be directly applied for recognition by the parties to the mainland intermediate people's courts. After the review is passed, the judgments will be enforced in accordance with mainland enforcement procedures. The new arrangement greatly expands the scope of recognizable judgments and is no longer limited to cases under agreement jurisdiction. When applying, the parties need to submit certified judgments, proof of effectiveness, and Chinese translations, etc., and pay attention to the two-year application time limit. It is recommended to first check the type of judgment and its effective status, and refer to the relevant provisions for further information.Creditor's rights and debts, and enforcement casesColumn.

I. Problem Background and Typical Scenarios

Such needs are commonly encountered in several situations: first, when a plaintiff wins a judgment in a Hong Kong lawsuit, but the defendant's assets are located in mainland China; second, when a Hong Kong company or individual has real estate, equity, or bank deposits in mainland China that need to be liquidated. For the enforcement of related real estate, reference can be made to the relevant provisions of the Mainland Civil Procedure Law.Property transactions and construction projects1. The first category involves cases that cannot be recognized based on the jurisdiction arrangements stipulated in the agreement in the early years, and the parties hope to reapply according to the new arrangements; 2. The second category involves cases where the parties hope to reapply for recognition of the judgment in accordance with the new arrangements; 3. The third category involves cases that cannot be recognized based on the jurisdiction arrangements stipulated in the agreement in the early years, and the parties hope to reapply according to the new arrangements; 4. Marriage and family-related judgments require handling of property and custody matters in mainland China; 5. When dealing with similar cases in the Beijing area, the intermediate court usually first reviews and recognizes the judgment, and then proceeds to asset investigation and enforcement.

II. Key points of contention

Focus One: The transition between the old and new arrangements. The "Arrangement of the Supreme People's Court on the Mutual Recognition and Enforcement of Judgments in Civil and Commercial Cases by the Courts of the Mainland and the Hong Kong Special Administrative Region" (implemented on August 1, 2008) requires the existence of a written jurisdiction agreement, with a narrower scope of application; after the new arrangement takes effect, jurisdiction by agreement is no longer a prerequisite, and the coverage has been significantly expanded. Focus Two: The enforceability of judgments. The judgments must be final judgments rendered by Hong Kong courts. Focus Three: Circumstances of non-recognition, such as the original court lacking jurisdiction, judgments obtained by fraud, violations of the basic principles of mainland law or public interests. Focus Four: Conflicts with parallel litigation. Rules for handling cases where a final judgment has already been rendered or is currently being litigated in the mainland. Focus Five: Statute of limitations and preservation of evidence. Applicants should pay attention to the two-year statute of limitations and, if necessary, apply for property preservation simultaneously. Focus Six: Enforcement implementation. Strategies for asset investigation, auction, and adding liable parties after recognition can be referenced.\nCross-border financeThe column. Specifically, it shall be subject to the currently effective laws, regulations, and judicial rulings.

III. Professional analysis by Henglue Lawyers

Judging from the domestic enforcement cases handled by our firm, whether the judgment can be enforced and compensation can be obtained depends on the availability of property clues and effective enforcement strategies. This principle also applies to the enforcement of Hong Kong judgments after they are recognized. First, in a case where the judgment ordered a company to return an intermediary service fee of 423,500 yuan, but enforcement failed. After entrusting Yin Hang, a lawyer, to handle the case, the lawyer found that shareholders Liu * and Zhang * had not paid their registered capital in full. The court ordered them to bear supplementary compensation liabilities within the unpaid amounts of 9 million yuan and 1 million yuan, respectively. Second, Zhang Nan applied for enforcement of a 2 million yuan loan against Zhou Qiang. The third-party objector raised objections based on the use of a false name to purchase the property, resulting in the suspension of enforcement. Lawyer Wang Dong represented the appellant, and the second-instance court reversed the judgment and allowed enforcement. Third, a loan of over 860,000 yuan was settled through installment repayment mediated by Tian Jiaoyan, with an agreement that any breach of contract in any installment would trigger enforcement of the remaining balance, effectively securing repayment. After Hong Kong judgments are recognized, the same measures such as preservation, investigation and control, and adding debtors can also be used to realize creditor's rights. This case was handled by Beijing Henglu Law Firm.Yuan HangThe attorney (practice certificate number: 11101202110286151, subject to the certificate issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

Action suggestions: First, check the type of judgment and its effective status to confirm that it falls within the scope of recognition, and obtain the judgment certificate and effectiveness certificate issued by the Hong Kong court; Second, prepare all the application materials, including the certified Chinese translation of the judgment, identity and authorization documents. The key points of the documents can be referred to for reference.Special services and other cases1. The first step is to determine whether the judgment is within the scope of recognition and enforcement in accordance with the provisions of the "Arrangement on the Mutual Recognition and Enforcement of Civil and Commercial Judgments between the Courts of the Mainland and the Hong Kong Special Administrative Region" (effective from January 29, 2024). 2. The second step is to determine whether the judgment is enforceable in accordance with the provisions of the "Civil Procedure Law of the People's Republic of China" (effective from January 1, 2022). 3. The third step is to apply to the intermediate people's court of the debtor's domicile, habitual residence, or property location for recognition. 4. After the recognition decision is made, apply for enforcement promptly and coordinate with the two-year statute of limitations. 5. Conduct preliminary investigations of mainland assets and evaluate preservation measures to prevent transfer. In terms of legal basis, the "Arrangement on the Mutual Recognition and Enforcement of Civil and Commercial Judgments between the Courts of the Mainland and the Hong Kong Special Administrative Region" (effective from January 29, 2024) stipulates the scope of recognition, application procedures, and circumstances of non-recognition. For enforcement procedures, the relevant provisions of the "Civil Procedure Law of the People's Republic of China" apply. For marital and family-related judgments, the "Arrangement on the Mutual Recognition and Enforcement of Marital and Family-Related Civil Judgments between the Courts of the Mainland and the Hong Kong Special Administrative Region" (effective from February 15, 2022) may also be referred to.

5. Henglu Law Firm's Advice

Risk Alert: First, although the new arrangement broadens the scope, there are still exclusionary items. Some cases have special arrangements. Applicants should check each item before applying. Second, the rejection of a recognition application does not affect the right to claim rights through other legal channels, but it will consume time and cost. Third, mainland property is easily transferred, so it is advisable to evaluate preservation measures while applying for recognition. Fourth, time limits and material defects are common pitfalls. Chinese translations and certification procedures should be completed all at once. It is recommended to entrust a lawyer who is familiar with the procedures of both regions to coordinate the progress, and you can consult with them for more information.Beijing Henglu Law FirmThe cross-border section on the official website.

VI. Frequently Asked Questions

Q1: What are the requirements for a Hong Kong court judgment to be enforced in mainland China?

The core conditions are: the judgment must be a valid civil and commercial judgment rendered by a Hong Kong court with enforceability; it must fall within the types of cases covered by the recognition arrangement; there must be no circumstances such as the original court having no jurisdiction, fraudulently obtaining the judgment, violating the basic principles of mainland law, or harming the public interest that disqualify it from recognition; and the judgment, certificate of effectiveness, and Chinese translation must be submitted. If all the conditions are met, the intermediate court may enforce the judgment in accordance with mainland procedures after issuing a recognition order. After the new arrangement comes into effect on January 29, 2024, the scope of recognition will no longer be limited to cases subject to agreement-based jurisdiction.

Q2: For applying for the recognition of a Hong Kong judgment, which court should I submit the application to, and what materials should I provide?

Submit the application to the intermediate people's court at the defendant's residence, habitual residence, or the location of the property. The materials usually include: an application for recognition and enforcement; a certified copy of the Hong Kong judgment and a certificate of judgment; a certificate of effectiveness; the applicant's identity certificate; power of attorney procedures; a Chinese translation that has been translated and certified; and clues to the property in mainland China. If the materials are incomplete, the applicant will be required to make corrections. It is recommended to prepare the materials item by item according to the list of acceptable courts under the guidance of a lawyer, so as to pass the review at one go.

Q3: How long does it take and how much does it cost to recognize a Hong Kong judgment?

The approval process is generally completed within a few months, depending on the pace of the court's review. After approval, an enforcement application is submitted, and enforcement measures are typically taken within six months. The auction evaluation period depends on the type of property. In terms of fees, the approval and enforcement application fees are charged according to legal standards. For large property targets, the fees are calculated based on a tiered rate. There are also costs for notarization, translation, and attorney fees. The overall budget should cover the procedures in both locations, and it is advisable to first assess the scale of the property and the expected recovery before initiating the process.

Q4: What should the debtor do if he/she has no assets after the judgment in Hong Kong is recognized and enforced?

We can continue to investigate property clues and apply to the court to search and control bank deposits, real estate, equity, and vehicles; if new clues are discovered, we can apply for resumption of enforcement at any time. If the debtor is a company and the shareholders have not paid in the full amount of their registered capital, we can claim accelerated maturity of the investment and additional liability. There are examples in our cases where the court ordered the shareholders who have not paid in the full amount of their registered capital to make additional compensation within the scope of their subscribed capital; if eligible, we can also apply for inclusion in the list of dishonest people and restriction of consumption, to put pressure on the debtor to fulfill their obligations.

Q5: Can a Hong Kong judgment be recognized even without a written jurisdiction agreement?

Yes. The new arrangement implemented on January 29, 2024 no longer requires a written jurisdiction agreement between the parties. Most effective civil and commercial judgments in Hong Kong fall within the scope of recognition, with only a few matters being excluded or subject to special arrangements. For cases that could not be recognized under the jurisdiction arrangement in 2008, those that meet the conditions of the new arrangement can reapply. It is recommended that lawyers first evaluate the feasibility of each item in accordance with the provisions of the arrangement.

The above content is based on the judicial practices in the Beijing area. The facts of individual cases and the jurisdiction of the courts may differ, which may affect the conclusions. Welcome to consult Henglu Law Firm about specific situations.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, so as to avoid missing the statutory time limit. →Legal services for creditor-debtor disputes·Attorney Yuan Hang·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and open adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. In case of disputes, please consult a practicing lawyer in time.