The Factors That Influence The Realization Of Equity Pledge Of The Listed Company

Recently,financial innovation has been developing rapidly,and a variety of means to provide the financial products arise.Pledge of the equity financing of listed companies has been one of new type of financing instruments occupying the important position in the financing business.After Shenzhen and Shanghai exchanges issue measures for Pledged Repo Transaction and the Registration and Clearing Business(Proposed Regulation)respectively in May,2013,provider of the pledge of the equity financing of the listed companies extends beyond commercial banks,trust companies to securities firms.This new type of financing instrument,as a kind of institutional arrangement provided by regulatory authorities,extending and even challenging the existing laws,spells an effective guide to the practice.Nevertheless,owning to the lack of organic link between the related legal laws and regulations,and the lack of experience in this field,this financing product still bear risks in the realization of the equity pledge.Therefore,this paper decides to research on the factors that affects the realization of equity pledge of the listed companies and its solution.Besides the introduction,this paper consists of four chapters.The first part describes the theory and the development of the equity pledge of the listed company,analyzing the provisions and theories of equity pledge of the listed company in the existing laws and regulatory documents,and clarifying some important definitions,such as stockmortgage loans,stock pledged repo,planned securities repurchase.The second part describes the common providers in the pledge of the equity financing of listed companies,analyzing different working procedures and characteristics among commercial banks,trust companies and security firms in pledge.This part also discusses the risks in the pledge realization and tries to offer some appropriate solutions for them.The third part analyzes different subject-matters in the pledge of the equity financing of listed companies.It discusses the legal issues facing non-restricted shares,restricted shares and state-owned shares,equity of listed companies with foreign investment,analyzing the risks in realization the equity pledge by different subject-matters of pledge,and proposes the corresponding solution strategy.The forth part discusses the other factors that influence the realization of equity pledge of the listed company,mainly including the change of the value of the subject–matter of pledge and its solution,moral risks of the pledge or influencing the pledgee and how to prevent moral risks,and the value proposition of fluidity contract that influence the rights of pledgee.