[extract] The PRC Law of Securities was enacted to promote financing and circulation of commodities, safeguard fulfillment of obligations and advance the development of the socialist market economy (Art 1). The Law is divided into seven chapters consisting of 96 articles. It clearly distinguishes a mortgage from a pledge and regards them as two different types of security interests. The forms of security interests provided for in the Law are guarantee, mortgage, pledge, lien and deposit (Art 2).
The aim of this paper is to discuss some of the salient features of the security interests provided for in the Law. Reference will also be made to provisions in other relevant legislation recently promulgated in China.