HONG KONG SAR, CHINA Law and Practice Contributed by: Frederick Hui and Samuel Li, Zhong Lun Law Firm
6.3 Security for Costs Under the AO, arbitral tribunals have an express statu - tory power to order security for costs. Section 56 (1) (a) of the AO allows a tribunal to require a claimant to provide security for the arbitration costs, but a tribu - nal may not make such an order solely because the claimant is not resident in Hong Kong or is controlled from outside Hong Kong. The tribunal must set a time limit for compliance, and if the claimant fails to provide security, it may stay or dismiss the claim. This power is also reflected in the institutional rules commonly applied in Hong Kong, such as Article 24 of the 2024 HKIAC Rules. Arbitrations seated in Hong Kong are governed by the AO, which gives effect to the Model Law. The AO sets out the fundamental procedural framework, including principles of equal treatment, party autonomy to agree the procedure, and the tribunal’s authority to conduct the arbitration as it considers appropriate where the parties have not agreed on procedural matters. It also contains provisions on issues such as seat, language and commencement of the arbitration. In essence, the parties are free to determine how the arbitration will be run, and failing agreement, the tribunal controls procedure subject to the AO. 7. Procedure 7.1 Governing Rules In practice, Hong Kong‑seated administered arbi - trations frequently proceed under institutional rules, most commonly the 2024 HKIAC Rules, which update various procedural and case‑management features, including timelines, information security measures and environmental impact considerations. Parties may also adopt other rule sets – such as the UNCITRAL Arbitration Rules – particularly in ad hoc proceedings. Court applications ancillary to arbitration, such as stays, interim measures, enforcement and set‑aside, are governed procedurally by the Rules of the High
ers the tribunal better placed to determine it. Com - mon forms of interim measures include injunctions (such as freezing/Mareva orders and anti‑disposal orders), preservation of evidence, orders maintaining or restoring the status quo, orders for security (includ - ing security for costs), disclosure orders and, where appropriate, the appointment of interim receivers. Hong Kong courts also grant worldwide relief where justified. When assisting foreign‑seated arbitrations, the courts exercise their powers in a supportive man - ner and with due regard to the supervisory role of the foreign tribunal. Hong Kong law also expressly recognises emergency arbitrators (Part 3A of the AO). Interim relief granted by an emergency arbitrator – whether appointed under rules providing for such procedures in Hong Kong or elsewhere – is enforceable in Hong Kong, with the court’s leave, as if it were a court order. For orders made outside Hong Kong, enforceability is limited to temporary measures such as maintaining or restor - ing the status quo, preventing prejudice to the arbitral process, preserving assets or evidence, and provid - ing security. Under the 2024 HKIAC Rules, an Emer - gency Decision binds the parties upon issuance and has the same effect as any interim measure under those Rules. The appointment or decision of an emergency arbi - trator does not prevent a party from applying to the Hong Kong courts. Both the AO and the 2024 HKIAC Rules contemplate that parties may seek urgent judi - cial assistance at any stage. The court nevertheless retains discretion to refuse relief where the issue is already being addressed by the tribunal – whether by the emergency arbitrator or, once constituted, the full tribunal. The court may intervene after an emergency arbitra - tor is appointed. The appointment or decision of an emergency arbitrator does not bar applications to the court. The AO allows the parties to seek urgent judicial measures at any time. That said, the court retains a discretion to decline relief where it is already the sub - ject of arbitral proceedings or better handled by the tribunal (including an emergency arbitrator or, once formed, the full tribunal).
Court, especially Order 73. 7.2 Procedural Steps
The AO, which incorporates the Model Law, pre - scribes several mandatory procedural requirements for arbitrations seated in Hong Kong. Parties must
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