Abstract: The establishment of chattel pledge requires the delivery of the subject matter. General opinion states that chattel pledges can be established by simple delivery and indicating delivery rather than by constitutum possessorium. The progress of social economy calls for further developments of the pledge system, so that the guaranty can be made the best use of and promote financing. This paper presents that establishing the chattel pledge by constitutum possessorium is accessible in the fields of legal theory and legislation. It is also beneficial to respect the autonomies of both parties and provide them with an additional path for choosing appropriate ways of guarantees.

Key words: chattel pledge, constitutum possessorium, indirect possession；making the best use of, encouraging financing