Security Rights in Property in Chinese Law - An Unattainable Goal to Construct a Coherent Legal Regime?

Abstract:     
Chinese property law was codified in March 2007. Being an important component, existing provisions governing security rights in property have been consolidated in the newly passed Property Act. The aim of this article is to analyze several highly controversial questions in detail such as creation and perfection, accessoriness and foreclosure of security rights, security rights in bankruptcy proceedings, priority rules, mortgages in movables and immovables, floating charge, restrictions on disposal rights of the security grantor as well as bona fide acquisition of security rights. The analysis reveals challenges brought about by incomplete mixed borrowings of foreign laws that China is now faced with in constructing an internally coherent and nationally uniform property law regime.

Keywords: China, Property Act, Security rights

JEL Classification: K11

Accepted Paper Series