Legal analysis: not allowed. Private schools, hospitals and other units want to mortgage the land use rights of state-owned construction land they have acquired to finance and apply for mortgage registration. Whether these lands can be mortgaged and whether they can be registered as mortgages is questionable by the land registry.
Legal basis: "Chinese people's **** and the State Medical Institutions Management Regulations" Article 3 medical institutions should be to save lives, prevention and treatment of disease, for the purpose of citizens' health services. Therefore, hospitals, whether public or private, should also aim at social welfare.
The People's Republic of China*** and National Code
Article 388 The establishment of a security right shall be subject to the conclusion of a security contract in accordance with the provisions of this Law and other laws. A security contract includes a mortgage contract, a pledge contract and other contracts with a security function. A security contract is a subordinate contract to the main debt contract. If the main debt contract is invalid, the security contract is invalid, unless otherwise provided by law. After the security contract is invalidated, the debtor, the guarantor, the creditor is at fault, according to their fault shall bear the corresponding civil liability.
Article 389 The scope of security for a security right includes the main claim and interest thereon, liquidated damages, damages for damages, custody of the secured property and expenses for realizing the security right. If the parties agree otherwise, they shall follow their agreement.