The floating charge in Chinese law: following the English model?

Zhicheng Wu and Hao Zhang

Chapter 7 in Floating Charges in Comparative Perspective, 2025, pp 233-252 from Edward Elgar Publishing

Abstract: The floating charge was formally recognised in mainland China by the Property Law 2007 for the purpose of facilitating financing for SMEs. The relevant rules were modified by the Chinese Civil Code 2020 in order to be in conformity with the World Bank's Ease of Doing Business Methodology. The scope of the eligible floating chargor and subject-matter of a floating charge are limited, though not as limited as reading the code provisions literally suggests. This chapter discusses these matters as well as issues in relation to the ‘crystallisation’ of floating charges in China and their effects on third parties. While the security system in the Chinese Civil Code to some extent has shifted from formalism to functionalism owing to the influence of US Law, the rules regarding the floating charge in Chinese law remain more akin to the English model than the American model.

Keywords: Floating charge; Chargor; Assets; Crystallisation; Third-party binding effect; Chinese law (search for similar items in EconPapers)
Date: 2025
ISBN: 9781035317134
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.elgaronline.com/doi/10.4337/9781035317141.00013 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 403 Forbidden

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:elg:eechap:22580_8

Ordering information: This item can be ordered from
http://www.e-elgar.com

Access Statistics for this chapter

More chapters in Chapters from Edward Elgar Publishing
Bibliographic data for series maintained by Jack Sweeney ().