The Research Of Law Problem On Investment And Financing By Cross-border Pledge Of Equity Stake In China

Since the establishment of Shanghai Pilot Free Trade Zone, the State Council issued a number of opinions encourage financial reform, providing a sound legal and policy condition. In June 2014, cross-border guarantee issued new regulations, and in December, FTA published the third case of financial reform and innovation,these initiatives provided legal and case support for the development of cross-border equity pledge business.In the view of international financial investment environment, form of investment has become increasingly diversified, cross-border investment and financing business has explored high heat, and the new round of demand of using of domestic and foreign capital has appeared. However, the current cross-border investment and financing business as well as the implementation way lacks specific legal provisions and detailed rules. Though an FTA case guide encourage related business, but no guidance procedures. Moreover, no system for reference content has researched on the academic field of cross-border pledge of equity stake so far. Thus, although the reality of this emerging model basis, no specific document details for financing has appeared by reference. Then, this article is for the systemic research on the problem of crossborder equity pledge, looking for providing a framework of reference for cross-border pledge of equity stake business.This article is divided into four chapters. The first chapter is an overview of the equity mortgage system, the main content-based traditional equity pledge, detailing the share pledge, cross-border equity pledge concepts and its classification, performance on the investment and financing. Based on this, we have to deepen understanding of the basic concept of cross-border equity pledge. Compared with other financing way, this chapter has highlighted the characteristics of cross-border equity pledge,and has laid the foundation for later discussion.The second and third chapters mainly base on the content of equity pledge and cross-border guarantee, make further comb to the establishment and content of crossborder equity pledge. This part of the case relates to the provision of cross-border equity pledge legal environment and establish processes to do the analysis of the existing law environment. This part has been clear about the cross-border equity pledge, equity investment restrictions, the equity value changes in quality, the concept of the rights and obligations of shareholder and pledgee,and at the same time the risks identified.The last chapter puts forward the risk of cross-border equity pledge. Articles for cross-border equity pledge business development problems are analyzed, sum up the inadequacies of the system and the risks, compare the attitude of foreign equity pledge for the provision of services, proposal for cross-border equity pledge risk prevention, and make exploration of specific content of the due diligence.