Has antifungal activity. Inhibits mycelial growth of wood rotting fungi P.chrysosporium MTCC 787, S.commune ITCC 3751, G.trabeum MTCC 355, P.agaricans ITCC 761, C.versicolor MTCC 138, P.versicolor ITCC 13, P.placenta MTCC 144 and P.friabilis ITCC 335. Random endo-hydrolysis of N-acetyl-beta-D-glucosaminide (1->4)-beta-linkages in chitin and chitodextrins. Inhibited by Hg(2+) and, to a lesser extent, by Ag(+). Hardly or not at all affected by Fe(3+), Mg(2+), Co(2+), Zn(2+), Ca(2+), K(+), EDTA, beta-mercaptoethanol and N-acetylglucosamine. Optimum pH is 5 at 37 degrees Celsius. Retains >80% activity after incubation at pH 3-10 for 1 hour. Optimum temperature is 50 degrees Celsius. Retains only 60% and 25% activity after incubation at 30 degrees Celsius and 60 degrees Celsius for 1 hour, respectively.