A Case Study On The Risk Of Collective Equity Pledge Of Qianshan Pharmaceutical Machine Major Shareholders

In recent years,equity pledge has been widely used as a new financing method.It refers to the pledge behavior of borrowers using their own equity as pledge to provide financing for financing.Equity pledge is a common means of financing for listed companies.It usually means that shareholders pledge their equity to financial institutions in order to obtain loans.After the equity pledge,the controlling shareholding of the major shareholder can not only be maintained,but also effectively manage the company,and the necessary funds can be realized to realize cash in advance.Therefore,more and more major shareholders use the equity pledge to absorb funds.Since the company's equity belongs to the property of the individual shareholder or unit,the shareholder has the right to dispose of it,and the proportion of pledge is only determined by negotiation with the pledgee,and there is no relevant and explicit laws and regulations to limit it.In addition,the intrinsic value of equity is also unstable and highly susceptible to changes in internal and external environments.When the company's major shareholder adopts the equity pledge financing behavior,once the company's share price falls sharply,there may be cases where the producer is unable to repay,causing the company's default risk.This paper starts with the research on the impact of equity pledge.Based on the analysis and analysis of relevant theoretical literature,this paper summarizes the risk of collective shareholder equity.In 2017,Liu Xianghua's top ten major shareholders appeared to be collectively detained.Due to the large shareholder's collective highquality equity pledge,the share price of Qianshan Pharmaceutical Machinery fell sharply,and the majority shareholder used pledge.The acquisition of funds for radical investment has had little effect,causing the company to face serious investment risks and is on the verge of bankruptcy.This paper studies the risks brought by the collective shareholding pledge of the major shareholder of Qianshan Pharmaceutical Machinery Co.,Ltd.,hoping to cause the company to attach great importance to the equity pledge of large shareholders.Therefore,it is of practical significance to analyze the risk of equity pledge of major shareholders in the prevention of equity pledge financing risk of listed companies.Based on the data from Qianshan Pharmaceutical Machinery from 2014 to 2018,this paper uses the literature research method,quantitative analysis method and case analysis method to deeply study the risks generated by the collective equity pledge of Qianshan Pharmaceutical Machinery's major shareholders.The research results show that the large shareholder's collective high proportion of pledged equity will cause market risk,which will lead to the company's operational risk and cause bankruptcy risk.In view of the above situation,this paper puts forward the following suggestions:(1)Improve the governance structure of listed companies,formulate the company system for the regulation of shareholder pledge behavior of large shareholders;(2)Further improve the regulation of information disclosure of equity pledge;(3)Strict pledge Evaluation of hostage rights and follow-up supervision.