Study On Money Flow Under Controlling Shareholder's Stock Pledge And Tunneling Behavior Of Listed Companies In China

China's equity pledge business has developed rapidly in recent years.However,affected by the Sino-US trade war,the slowdown of the domestic economic growth and the decline of the RMB exchange rate in 2018,A-shares have been impacted adversely,and more and more large shareholders of listed companies are facing “explosive positions” due to the high proportion of pledge of company equities.In order to avoid the financial crisis,in October 2018,the central government,local governments,and financial institutions made decisive attempts to introduce policies or programs to help listed companies and to mitigate the risk of equity pledge.The pledge of equity in a number of listed companies has been alleviated,and the control of the major shareholders and the development of the company have been stabilized.The government has invested in the resolution of the shareholding pledge crisis of listed companies,but their funds are actually taxpayers' money.Given a limited amount of funds,how can these aid funds be used to where they will work best?What kind of listed company shareholders deserve to be rescued and helped? This is a big problem facing all levels of government.Taking the Great Wall Department as an example,this paper uses the flow of funds as an entry point under the framework of information asymmetry theory,tunnel theory and the theory of large shareholder pyramid to study the background,motivation and economic consequences of equity pledge and short-selling behavior.Through combing the process of building the Great Wall and the pledge of the major shareholder's equity,it is estimated that the funds of the Great Wall Department's equity pledge loan are highly consistent with the funds and key points in the process of building the system.It is speculated that the equity pledge loan is integrated in the process of the Great Wall system.The fund played a decisive role,and through the abnormal phenomenon of the related party transactions of Great Wall Animation after the acquisition,the purpose of the Great Wall system was to cut short-selling listed companies.Then it analyzes the economic background of the institutional background and motivations of the Great Wall's use of the equity pledge system,in order to provide a new research perspective and a contribution to the short-selling problem of the major shareholders after the equity pledge,and to identify the major shareholders' equity pledge for the regulatory authorities.The post-empty behavior provides new ideas to help protect the interests of small and medium investors.