I need to take security over my assets in China, and have heard it can be challenging. I am not sure which types of security are recognised in PRC law (mortgages, pledges, liens ..?) and what the approval requirements may be. As a foreign investor, I assume I will need to register the security, but I am not sure with whom, or how. In short:
How do I take security in China?
The domestic perspective
The PRC Property Law (effective as of October 1 2007), the PRC Security Law (effective as of June 30 1995) and their judicial interpretations constitute the main body of the PRC security legal structure. Pursuant to the above mentioned laws and other relevant PRC laws, the security in China takes the form of guarantee, mortgage, pledge, lien and deposit. Except for the lien, contracts for taking security must be documented in a written contract.
Under the...
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