Study On The Equity Pledge Risk Of NEEQ

On the occasion of the rapid development of National Equities Exchange and Quotations(NEEQ),more and more enterprises choose equity financing by way of pledge.But NEEQ listed companies is lower,stock price is not affected by the price limit,poor liquidity,China's NEEQ pledge equity does not have very perfect laws and regulations,equity pledge of NEEQ hidden behind a huge risk.How to prevent NEEQ equity pledge risk is very important to NEEQ market and even the whole financial market,so it has great research significance.Taking Feng Yang company as a case,this paper analyzes the process,motivation,risks and causes of the equity pledge,and puts forward some suggestions to prevent the risk of equity pledge.The reasons for the equity pledge of Feng Yang include quick money in place,financing of restricted shares,dilution of the ownership of large shareholders and the purpose of tunneling.Equity pledge poses risks to the listed company,the pledgee and the investors in three aspects.Using the VaR model to quantify the magnitude of these risks,we find that with the continuous equity pledge of major shareholders,the risk level is higher and higher,and the existing measures do not have good prevention and avoidance of such risks.The board of directors of the case company is in the name of nothing.There are no independent directors,the use of equity pledge is not standardized,the risk awareness of the pledgee is not strong and the lack of external supervision is the main cause of the risk.How to solve the problems exposed in the case is our urgent problem.This paper stands in the listed company(financing),the pledgee(financing),regulators(external environment)three aspects to discuss the NEEQ equity pledge risk prevention measures,suggested that the company should establish clear provisions of the articles of association of the company equity pledge ratio,which can be used to measure the net Holdings of shareholders of the company's control,and shall set up independent directors represent the interests of minority shareholders,Feng Sheng Yang company in addition to the use of VaR model to measure every pledge risk size can also be on their own financial early-warning model using Z value.As for the pledge,should increase the awareness of risk,also can judge the equity pledge financing risk with the efficiency,whether the company has pledged to distinguish the repayment ability,should also continue to maintain the company's business situation in the pledge after tracking.The regulatory authorities should make clear restrictions on the NEEQ of relevant policies and regulations,for violation of the provisions of the company,the relevant departments must be severely punished,strengthen information disclosure of equity pledge,effective restraint of NEEQ controlling shareholder equity pledge behavior is not reasonable,perfect the equity pledge risk supervision mechanism,make use of the healthy and orderly to equity pledge the NEEQ market.