legal ground
Article 27 of the Company Law of People's Republic of China (PRC)
Shareholders can make capital contributions in currency, or in kind, intellectual property rights, land use rights and other non-monetary properties that can be valued in currency and transferred according to law; However, except for the property that cannot be used as capital contribution as stipulated by laws and administrative regulations. Non-monetary property as capital contribution shall be evaluated and verified, and its value shall not be overestimated or underestimated. Where there are provisions in laws and administrative regulations on evaluation and pricing, those provisions shall prevail.
Article 14 of the Regulations of the People's Republic of China on the Administration of Company Registration
The mode of capital contribution of shareholders shall comply with the provisions of Article 27 of the Company Law, but shareholders shall not make capital contribution at a fixed price by means of labor service, credit, natural person's name, goodwill, franchise or property set as guarantee.