On November 20, 2024, the Beijing Fourth Intermediate People's Court concluded the case regarding D and Zhang's application for recognition and enforcement of a civil and commercial judgment rendered by the Hong Kong High Court. This case marks the first instance in the Chinese mainland of applying the "Arrangement on Reciprocal Recognition and Enforcement of Civil and Commercial Judgments by Courts of the Mainland and the Hong Kong Special Administrative Region" (hereinafter referred to as the "Arrangement") since it came into effect on January 29, 2024.
On May 7, 2024, the Court of First Instance of the High Court of the Hong Kong Special Administrative Region issued a civil judgment in the case where D requested Zhang to return funds and pay interest. The judgment ordered Zhang to pay D USD 723,695.99 along with corresponding interest and costs. On September 4, 2024, D filed an application with the Beijing Fourth Intermediate People's Court, requesting the recognition and enforcement of the aforementioned civil judgment. After review, the Beijing court determined that the civil and commercial judgment in question was issued by a Hong Kong court after the "Arrangement" came into effect and found no grounds under the "Arrangement" to refuse recognition and enforcement. Consequently, the court ruled to recognize and enforce all components of the civil judgment.
The "Arrangement" replaces the "Arrangement on Reciprocal Recognition and Enforcement of Judgments in Civil and Commercial Matters Based on Parties' Choice of Court Agreements Between the Mainland and the Hong Kong Special Administrative Region," which was issued by the Supreme People's Court in July 2008. The new Arrangement broadens the scope of judgments eligible for mutual recognition and enforcement between the two jurisdictions, significantly enhancing civil and commercial judicial cooperation. The Beijing Fourth Intermediate People's Court accurately interpreted and applied the "Arrangement" in its review and recognized and enforced all items of the civil judgment rendered by the Hong Kong High Court. This decision holds great significance for advancing interregional judicial cooperation, as it effectively safeguards the legitimate rights and interests of the parties involved and provides legal assurance for smoother and more prosperous civil and commercial exchanges between the two regions. It further demonstrates consistency in institutional practices within the "One Country" framework across different legal systems.
