Analysis Of The Reasons And Effects Of Equity Pledge Financing For Enterprises On The New Third Board

The main problem of the restricting the growth of small and medium-sized enterprise in China is the financing difficulties for a long time.With the advance of the transfer system of small and medium-sized enterprise in China,the small and medium-sized enterprises have new financing channels.This solves the financing problem to some extent.The main body of the new three boards is small and medium-sized enterprises mainly.Therefore,the requirements for listing restrictions are low.As long as the information is strictly disclosed,it can be approved and approved,and the requirements for the size of the assets and profitability of the company are relatively loose.As a result,the internal management strength of the new three-board enterprise has increased,and the external recognition has increased.At the same time,the liquidity of the equity transfer has also been improved.As an over-the-counter trading platform,the new three boards not only solve the problem of financing difficulties due to insufficient strength,but also adjust the capital structure of the enterprise through the stock transfer system,which has eased the financing difficulties of small and medium-sized enterprises to a certain extent.The main forms of financing for the new three-board market are targeted issuance,equity pledge,and issuance of private debt of small and medium-sized enterprises.Among them,targeted issuance has a high success rate and is used as the preferred financing method for new three-board companies.However,due to its limited financing strength and complex financing processes,enterprises can not obtain the required funds in a timely manner.According to China securities network data,in 2017,the number of equity pledge financing in the new three-board market has increased significantly,reaching a record high,but the targeted increase has been cold.For the reason of research,this article mainly analyzes the use of equity pledge financing in the new three-board.The relevant data show that many listed companies have carried out equity pledge financing.However,the new three boards themselves started late and were relatively young.Therefore,the existence of equity pledge financing in the new three boards market is relatively short.It is a new type of financing.The research on the financing of the new three-board equity pledge is relatively few,so this paper will adopt the method of literature reading and case analysis to carry on the systematic analysis of it.Through combing the previous relevant results firstly in this paper,we found that the new three board equity pledge financing research less and as its own entry point,and then from the equity pledge financing in the new three board as the applicability of the following case.This paper selects Huaxida Technology Co.,Ltd.as the main body of the case analysis,and analyzes the reasons and effects of the equity pledge conducted by Huaxida Technology Co.,Ltd..The purpose is to provide some reference for other companies to carry out equity pledge financing.And through the analysis of this method of financing,the corresponding countermeasures are given,and some suggestions are also put forward for the relevant regulatory agencies 'management norms.