A Case Study On The Risk Of Equity Pledge Of Shanghai RAAS Holdings Shareholders

As China's economic system reform began to be comprehensively promoted in2013,the financial services industry has developed rapidly.In the face of difficulties in debt financing and hopeless listing,and the company's great demand for development funds for industrial development,the scale of equity pledge business has also begun to expand and develop rapidly.This business tool can alleviate the company's financing difficulties and also brings a series of potential risks.Especially when the equity pledge ratio of the controlling shareholder of the listed company is extremely high,the potential risks of the enterprise will be more prominent.In the past two years,due to the impact of relevant national industry policies,"Black Swan" emergencies,the capital market has caused dramatic fluctuations in the stock price of the A-share market.The risk of forced liquidation will involve many companies that pledge high proportions of equity,which will bring companies the risks that cannot be underestimated.This article takes Shanghai RAAS Blood Products Co.,Ltd as the case study object,and selects the data from 2014 to the end of the third quarter of 2019 as the research support.Through the application of literature research,event research and case analysis,according to the principal-agent theory,the separation of control rights and cash flow rights,and risk control theory,in-depth and detailed analysis of the potential risks of the equity pledge of Shanghai RAAS's controlling shareholders and how Shanghai RAAS responds to potential risks.The controlling shareholder's choice of equity pledge is based on the company's industrial development financing needs and the purpose of maintaining its own control.The company's stock price fell sharply under the negative impact of the internal and external environment.The high shareholding pledge of the controlling shareholder will further reduce the company's stock price and expand the company's market risk.At this time,the decline in the company's stock price may cause the pledged equity to touch the liquidation line and face the threat of liquidation,which in turn may cause the company's control rights to change.At the same time,under the situation of asymmetric information,thecontrolling shareholder's high proportion of equity pledge may cause the company's interests to be encroached on.In order to deal with the above risks,Shanghai Rice has taken remedies for stock suspension,consultation with shareholders to increase the company's shares,and guiding and supporting shareholders to supplement pledges,which ultimately mitigated the risks to a certain extent,But these remedies are not comprehensive and the effect is not obvious.In view of the above situation,this article draws suggestions and enlightenment: Shanghai RAAS should improve the company's governance capabilities,the company should regulate the disclosure of equity pledge information,strengthen the monitoring of equity pledge behavior,and the company should improve the equity pledge risk prevention mechanism.In this paper,through in-depth research and analysis of the equity pledge risk of the controlling shareholder and the measures to deal with the risk,it is hoped that In order to increase the degree of attention of listed companies on the risk of controlling shareholders' equity pledge and it has practical significance for the listed company to prevent and respond to the equity pledge risk of the controlling shareholder.