Study On The Impact Of Controlling Shareholder’s Equity Pledge Of Kangdexin

With the increasing volatility of China’s capital market and the tightening of Jinrongshichang’s supervision in the past two years,the risk of the stock pledge explosion has also risen.As a way of financing,the equity pledge can effectively alleviate the problem of insufficient capital of shareholders of listed companies,but too frequent and too high proportion of the shareholder pledge will transmit negative emotions to the market,thus increasing market volatility.With the development of the capital market,the transfer of control rights by means of equity pledge is more and more,and the consequences of different equity pledge opportunities are different.This paper mainly takes this as a basis to analyze the impact of controlling shareholder equity pledge on listed companies in the form of cases.This paper first analyzes the background of equity pledge in China’s capital market,combines the relevant concepts of equity pledge,and takes Kangdexin as the research object,analyzes the motives and risks of the equity pledge of its controlling shareholders,and analyzes the factors that lead to risk.From the three aspects of stock price fluctuation,financial impact,and business operation impact,Kangdexin’s controlling shareholders have a negative impact on listed companies because of the high proportion of equity pledge.On the basis of this,the paper puts forward the countermeasures and suggestions for the management of equity pledge companies,so as to provide some experience for listed companies that need to undertake equity pledge in our capital market,so as to promote the healthy and orderly development of our capital market.Through the study of the behavior of Kangdexin’s controlling shareholders,the conclusion is drawn:First,the operating style of Kangde’s new controlling shareholders is more radical,and all the listed company’s shares are pledged and financed.These funds are invested by the controlling shareholder’s short debt.Listed companies have invested heavily in carbon fibre,a"money-burning" industry.Such behavior not only causes the controlling shareholders to disperse the energy and financial input to the listed companies,but also causes the consequences of losing the company’s equity due to the failure of in vitro investment.Second,because of the separation of cash flow rights and control rights of the controlling shareholders,the high proportion pledge reduces the cost of hollowing out.Kangde’s new controlling shareholders make more risky investments by occupying the funds of listed companies,making the listed companies have a large amount of interest-bearing liabilities,and higher financial costs crowd out the company’s profits.Third,the announcement issued by the controlling shareholder when the equity pledge did not have a negative impact on the company’s stock price trend.However,due to the pressure of the warning line and the warehouse line,the listed company frequently suspended trading after the stock price fell in the short term to avoid the risk of continued decline..After Kangdexin’s stock price fell below the warning line and the peace warehouse line,investors panicked and sold on Kangde’s new stock,and the stock price continued to fall sharply.The management of the listed company began to leave,and the normal operation of the company was greatly affected.