On March 16 of this year, the National People’s Congress promulgated the Property Law. The Law expands the range of assets that can be used as collaterals, ensuring that account receivables can be used in pledge financing, which will be of great significance to ease the small- and medium- enterprises financing difficulties and boost economic growth.
The Property Law stipulates in Article 228 that , As regards the pledge of receivables, the parties concerned shall enter into a written contract, and the pledge right shall be established after the related credit rating institution has handled the registration of the pledge. Let me take this opportunity to give you some background information.