Property Preservation
Property preservation refers to the judicial act wherein the people’s court adopts compulsory measures to seal, detrain and freeze the property of the respondent or objects in dispute, at the application of the other party, and place them under the effective control of the Court. Property preservation is sorted to pre-litigation property preservation and property preservation in litigation. Pre-litigation property preservation refers to the compulsory measures adopted by the people court on the relevant property at the application of the interested party before lawsuit is lodged. Property preservation in litigation refers to the compulsory measures adopted by the people’s court during litigation so as to ensure the effective execution of future judgments. After adoption of property preservation measures, the person against whom the application is made cannot dispose of the preserved property at will, After the judgment takes effect, if the person against whom the application is made fulfills its relevant obligations, the property preservation measures shall be released; but if he fails to do so, the court may dispose of the preserved property to effectively protect the legal rights and interests of the creditors.

Property/ Preservation Guarantee
The property preservation measures that seal, detrain and freeze the property of the respondent may affect its normal production activities and cause certain losses. In order to protect the legal rights of the person against whom the application is made , the law stipulates that, if the applicant makes any mistake in its application, the applicant should compensate the person against whom the application is made for any loss caused by property preservation. Therefore, the court requires the applicant to provide economic guarantee in equal value with the property to be preserved when the applicant applies for property preservation, so as to ensure that losses due to improper property preservation can be compensated.
Property preservation guarantee is a guarantee supplied by the applicant to the court when applying for property preservation in order to compensate the person against whom the application is made for any loss is caused by improper property preservation.
For pre-litigation property/asset preservation, the applicant must supply security. For property preservation during the litigation, one party may file the application or the court may make a decision with its right for property preservation, and the court may request the applicant to provide security. In case the applicant refuses to do so ,his application shall be rejected.

The Types of Property/ Preservation Guarantee
When providing security to the court, an enterprise may use its own property, such as cash, housing property or others accepted by the court as pledge or security, as well as the third party guarantee.When such forms of guarantee are difficult under certain circumstances, i.e. the property are not sufficient to be used as security, the capital must be used as working funds, or it is inconvenient to find the third party enterprise, an alternative is to have a professional guarantee company with good reputation and strength to provide “property preservation guarantee”.
China National Investment and Guaranty Co., Ltd (hereinafter referred to as I&G) is the 1st nationwide and professional guarantee company approved by the Chinese government. It introduces general and mature international credit guarantee practices into China, provides professional, standard and timely guarantee services to enterprises, and opens up a new way for enterprises to secure their property when they have difficulty to use their own property as security or pledge.

Basic Requirements for Property Preservation Guarantee

1. Applicants: corporate enterprise and establishments incorporated through legal procedures, or other economic organizations or individual persons;
2. Materials required: documents evidencing infringement upon their legal rights and interests;
3. Subject of preservation: basic information on the subject to be preserved.

Basic Procedures for Property Preservation Guarantee
1. The applicant files an application to I&G accompanied by the following materials:
1.1 Bill of complaint or application for arbitration;
1.2 Evidential materials;
1.3 Application for property preservation; and
1.4 Business License.
2. I&G signs a Trust Guarantee Contract with the applicant.
3. The applicant pays guarantee fee to I&G.
4. I&G issues a Letter of Property Preservation Guarantee for the applicant.

Guarantee Fee
Guarantee fee is determined through negotiations in consideration of such factors as the value of the subject, preservation measures and risk level of the property to be preserved, but limited minimum is RMB10,000.