Study On SMEs' Equity Pledge Financing In The NEEQ

As an important financial access of debt type for SMEs in the NEEQ market,equity interest pledge has shown explosive growth trends recently.From 2016 to March 31 th 2017,there are 3873 equity pledges trades on the NEEQ.After a company joins in the NEEQ,its equity liquidity has been increased,which leads to possible to value the equity.In addition,its corporate governance and information transparency has been improved.Therefore,all these changes make it convenient for asset-light companies on the NEEQ to promote equity pledge business.The article selects the equity pledge business of Shanghai Eshop Technology Co.,Ltd as a study case,adopts the methods of quantitative analysis,qualitative analysis and empirical analysis,etc.Taking the basic information of NEEQ as the breakthrough point,the paper briefly describes the current financing ways on the NEEQ,especially equity pledge business.The article introduces the fundamental state and financial situation of the case.Then,the paper makes a research about financing feasibility,financing rationality,financing effect,short-term market performance and financing risks.Next,through the analysis of the results show that equity pledge financing has feasibility and rationality.It also has obvious characteristics,such as high business speed,free use of funds,low financing costs,restricted shares revitalization,maintenance of corporate control,rapid increase in operation,etc.In conclusion,the article is aimed at providing reference for SMEs to access to finance after listing on the NEEQ.Furthermore,the article provides ideas in future development of equity pledge business on the NEEQ.