Legal analysis: pledge, also known as pledge, means that the debtor or the third party transfers his movable property to the creditor for possession as a guarantee for the creditor's rights. When the debtor fails to perform the due debt or the pledge is realized as agreed by the parties, the creditor has the right to be paid in priority for the proceeds from the discount, auction or sale of the movable property. Pledge includes chattel pledge and right pledge. Real estate cannot be pledged in principle.

Legal basis: Civil Code of People's Republic of China (PRC).

Article 425 Where the debtor or a third party transfers his movable property to the creditor to guarantee the performance of the debt, and the debtor fails to perform the due debt or the creditor has the right to be paid in priority for the movable property.

The debtor or the third party specified in the preceding paragraph is the pledger, the creditor is the pledgee, and the delivered movable property is the pledged property.

Article 440th The following rights that the debtor or a third party has the right to dispose of may be pledged:

(1) Bills of exchange, promissory notes and checks.

(2) Bonds and certificates of deposit.

(3) Warehouse receipts and bills of lading;

(4) Transferable fund shares and equity;

(5) Transferable intellectual property rights such as the exclusive right to use a registered trademark, patent right and copyright;

(6) Existing and future accounts receivable;

(7) Other property rights that can be pledged according to laws and administrative regulations.