Legal basis: Article 394 of the Civil Law of People's Republic of China (PRC): In order to guarantee the performance of the debt, if the debtor or a third party does not transfer the possession of the property and mortgages the property to the creditor, the debtor fails to perform the due debt or the creditor has the right to receive priority compensation for the property. The debtor or the third party specified in the preceding paragraph is the mortgagor, the creditor is the mortgagee, and the property that provides guarantee is the mortgaged property.
Article 395 of the Civil Code of People's Republic of China (PRC): The following properties that the debtor or a third party has the right to dispose of can be mortgaged:
(a) buildings and other land attachments;
(2) The right to use construction land;
(3) the right to use the sea area;
(4) Production equipment, raw materials, semi-finished products and products;
(5) Buildings, ships and aircraft under construction;
(6) means of transportation;
7) Other properties that are not prohibited by laws and administrative regulations from being mortgaged.
The mortgagor may mortgage the property listed in the preceding paragraph together.