1. Is it possible for documents to be executed electronically (whether by the manual insertion of a digital signature or the use of an e-signing platform) under the laws of this jurisdiction? If so, is this limited to only particular types of finance documents?
In general, electronically signed finance documents are legally valid and enforceable in the PRC, provided that the electronic signatures satisfy all of the following conditions and are therefore deemed reliable electronic signatures under PRC law:
- The electronic data that is used to generate the electronic signature is exclusively owned by the signing party at the time of execution.
- The electronic data that is used to generate the electronic signature is exclusively controlled by the signing party at the time of execution.
- Any alteration to the electronic signature after signing can be detected.
- Any alteration to the contents and form of any electronic data can be detected after signing.
However, finance documents may not be executed using electronic signatures in certain scenarios as they are subject to specific form requirements. For example, for finance documents that must be registered with the relevant authorities (e.g., in the case of the registration of an equity pledge or mortgage of real property), the relevant authorities usually only accept wet ink signatures and/or company chops for registration purposes.
2. Where the witnessing of a signing is contemplated, is it possible for the witness to verify the signature over a live video call?
Witnessing is not mandatory for signing of finance documents under PRC law. Nevertheless, where witnessing is required pursuant to the stipulation of the underlying finance document, the witness will usually attend the signing process in person.
3. Is it possible to register/perfect security electronically without wet ink signatures?
It depends on the type of security contemplated by the undertaking finance documents. For mortgage over real property, an equity pledge and other types of security that require the physical submission of the registration application with the relevant authorities, the relevant authorities usually only accept wet ink signatures. For certain types of security that either do not require registration or can be registered or perfected through online registration with the relevant authorities (e.g., mortgage of movable assets, pledge over receivables, etc.), the security can be registered and/or perfected electronically without requiring wet ink signatures.