Han Kun Law Offices recently acted for an overseas applicant in obtaining a high-value and complex asset preservation order from the Hangzhou Intermediate People's Court ("Hangzhou Court") in support of an arbitration administered by the Hong Kong International Arbitration Centre ("HKIAC"). The matter, which involves more than ten respondents (both individuals and entities), nearly one hundred preserved asset clues, and a claim exceeding RMB 800 million, marks an important precedent in the practical implementation by Arrangement Concerning Mutual Assistance in Court-ordered Interim Measures in Aid of Arbitral Proceedings by the Courts of the Mainland and of the Hong Kong Special Administrative Region ("Arrangement").
Within just five weeks, Han Kun successfully secured the preservation measures and effectively safeguarded the client's core commercial interests. The team comprised partner David Gu, partner Yuxian Zhao, senior associate Binle Huang, and associate Yitao Guo, showcasing the firm's comprehensive strength in cross-border commercial dispute resolution and international arbitration.
Case background
The dispute arose from an equity repurchase agreement with a Hong Kong-seated arbitration clause. Following the occurrence of a contractual repurchase event, the applicant sought to compel the obligors to repurchase its shares in the target company and to pay the principal investment amount plus interest. When the obligor failed to fully perform its obligations, the applicant commenced arbitration before HKIAC and, in parallel, applied to the Hangzhou Court for interim asset preservation pursuant to the Arrangement.
Our role
Han Kun's dispute resolution team acted swiftly and decisively, coordinating closely with counsel in the United States, Hong Kong, the British Virgin Islands, and the Cayman Islands. The Han Kun team led every stage of the preservation process, from drafting and preparing the application materials, to handling the notarization, legalization, and translation of qualification documents; negotiating and procuring preservation insurance; identifying and verifying asset preservation clues; and maintaining effective, proactive communication with the Hangzhou Court throughout. This comprehensive and coordinated approach enabled the court to issue and enforce the preservation order in an extraordinarily short timeframe.
Significance
This case is a landmark example of a mainland court supporting a Hong Kong arbitration. Despite the Arrangement having been in force since 1 October 2019, there remain no detailed operational guidelines and practical implementation issues continue to arise. This matter's complexity—multiple respondents, significant amounts in dispute, and intricate asset-tracing work—combined with the unusually short ruling period (far shorter than the typical two months) underscores both the mainland courts' commitment to supporting Hong Kong arbitration and Han Kun's ability to navigate the interplay between international arbitration and domestic court proceedings.
The case also demonstrates Han Kun's rapid responsiveness and efficiency in managing complex, multi-threaded matters. Attorneys from the firm's Beijing and Shanghai offices worked seamlessly to deliver a rational, streamlined workflow that achieved both legal and commercial objectives of the client on time and within the agreed budget.
Client recognition
The client—a leading global investment fund—entrusted Han Kun with high expectations for this matter. By delivering an outstanding result under challenging conditions, our team earned the client's full recognition and this reinforced Han Kun's reputation for excellence in cross-border dispute resolution and international arbitration.
