Research On Risk Prevention Of Equity Pledge In NEEQ

National Equities Exchange and Quotations(NEEQ),founded in 2006 is an important part of the capital market.It provides small and medium enterprise that is listed with shortcut for capital, as a supplement of mainboard and carve out board market.It comes into our mind how to handle with the risk brought with quity pledge financing as it being more and more normal for small and medium enterprises to finance with equity pledge.Firstly, this paper sorts out the history of equity pledge business, mainly in National Equities Exchange and Quotations. Then this paper makes an introduction into the status and problems of equity pledge business. Moreover, with case study, risk prevention mechanism is introduced systematically, only to concludes that pledgee can control risk by due dilligence, case execution and feedback.At last, the paper makes some policy recommendations to promote the stable development of NEEQ: First, reducing the barriers to entry in order to increase the number of investors. Second, promoting the market maker system vigorously and introducing auction trading system to enliven the trading volume. Third, broadening the financing channels of listed companies and improving their ansfermechanism.Finally, recommending the regulatory authorities to relax the conditions for financial institutes to participate in the NEEQ.