This chapter provides a snapshot of the recent developments on Chinese security interest law. Several questions will be explored. Firstly, were there any needs for changes? Secondly, what are the recent changes? Thirdly, have these changes achieved the purpose? I will offer some critical reflections of the law in terms of clarity, simplicity, convenience, and fairness. Not only are the relevant background and statutory framework of the security interests explained, but its theoretical structure and several practical issues will also be discussed. For instance, where a loan has been secured by both a personal guarantee and a mortgage, in the absence of any agreement, will the creditor have a free choice on which one to enforce first? Another question to be addressed is in situations where more than two securities had secured a loan (including a personal guarantee and mortgages) on a joint and several liability basis, in the absence of any agreement, can a security provider indemnify from the others after it fulfilled its security obligation in case of the debtor’s insolvency ?

This chapter is about registration systems for interests in property. The chapter takes an innovative approach by incorporating the systems and legal frameworks for both land and personal property. This is a theme reflected in other chapters of the book. In this chapter, the primary system for land registration, the Torrens system is explained in detail. The Deeds registration system in relation to general law land is also explained. The chapter covers the electronic Personal Property Securities Register (PPSR,) where security interests in personal property are recorded. The chapter aims to draw comparisons between the systems to identify what lessons can be learned in terms of optimal, effective, and efficient methods of electronic registration of interests in property.

In this chapter, we will be looking at what a ‘security’ or a ‘security interest’ is, as it affects both real and personal property.

This chapter is designed for those studying property law and is a general overview of the law relating to the creation of property interests in both real and personal property by way of the use of a security.

This chapter is broken down into both general and specific topics. There is an overview to understand what securities are, and then the chapter considers in more detail those securities that affect real property (e.g. a mortgage given by a bank to a purchaser to allow the purchaser to buy real estate); and securities over personal property, (e.g. a loan by a lender to a farmer to buy a pivot irrigator that will provide water to the farmer’s crops).

Securities in relation to real land is dealt with by a myriad of Torrens legislation and property law statutes which are, for the most part, similar in each jurisdiction. Securities in relation to certain personal property is generally dealt with by federal law pursuant to the Personal Property Securities Act 2009 (Cth).

In this chapter, we examine the law relating to corporate finance, focusing on share and debt finance. We examine the nature of share finance (including different types of shares), the different forms of debt finance (including debentures), and the nature of security interests. We consider share capital transactions including dividends, alterations and reduction of capital, share buy-backs and financial assistance transactions. This area of corporate law uses some specific terminology. We define these terms in the text; other sources, such as legal and business glossaries, may also assist.