Research On The Financing Risk Of Huayi Brothers’ Pledge

With the increasing difficulty of market financing,equity pledge financing has become a new way of financing.The main body of equity pledge financing activities has generally become the major shareholders of listed companies.The shareholders convert the static Book equity into the current capital,complete the circulation of capital and solve the problem of capital shortage faced by the company and the controlling shareholders,and open up a more convenient channel for enterprise financing,so it is sought after by listed companies.In recent years,equity pledge financing is more and more widely used,and various risk problems are gradually emerging.Although the pledge of stock rights appears to be a personal pledge of major shareholders,its unique position will affect the operation of the company,thus causing a number of risk problems.Therefore,through the case study on the financing risk of equity pledge of major shareholders,it has important academic value and practical significance for the standardized operation of equity pledge in the capital market in the future.Based on the literature review at home and abroad,this paper summarizes the related concepts and theories of equity pledge financing risk.Then,it analyzes the overall scale and industry status of stock pledge in A-share market.This paper takes Huayi Brothers’ equity pledge financing as a case study,and identifies the risks of equity pledge financing from four perspectives:financial risk,interest encroachment risk of small and medium shareholders,market risk and agency risk of the company,and further analyzes the causes of the risks.Finally,according to the conclusion of the case study,the paper puts forward the risk prevention suggestions from three aspects:clarifying the strategic planning of the enterprise,improving the internal governance mechanism of the company and strengthening the external supervision system of the company,hoping to standardize the equity pledge financing behavior of the listed companies in China,reduce the risk of equity pledge financing,and promote the healthy development of the capital market.