On November 8 2016, the Supreme People's Court (the “SPC”) issued the Provision of the Supreme People's Court on Several Issues Relating to Handling of Property Preservation Cases by People's Courts (the “Provision”) which shall become effective as of December 1 2016.

According to the previous legal practice in China, the property preservation is difficult to be executed due to the excessively high requirements on the application of the preservation, the discrepant criteria of the judgement, the improper executions, etc. Under such circumstances, on one hand, it becomes quite easy for the debtors to conceal or transfer their property before or during the process of dispute resolution. On the other hand, if any malicious preservation occurs, the debtors’ legitimate rights cannot be protected properly.