Vol 18 (2021) - Issue 4

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Cross-Border Insolvency between Mainland China and Hong Kong: A First Glance from a Global Perspective

Synopsis
This article compares the new Mainland China–Hong Kong cross-border insolvency cooperation arrangement with the instruments used around the globe. The new Record of Meeting reached May 2021 between the Supreme People's Court of the People's Republic of China and the Government of the Hong Kong Special Administrative Region marks a significant step towards mutual recognition in cross-border insolvency cases, laying down the bedrock for future cooperation. Yet, the new arrangement is still a rough draft, without considering detailed issues such as parallel proceeding, applicable laws, forms of cooperation or group insolvencies. This article provides a first evaluation of the feasibility of the new arrangement, taken into account past experiences in other parts of the world.
In particular, this article encourages negotiators and stakeholders to learn from existing soft law principles and guidelines