Study On Risk Control Of Controlling Shareholder's Equity Pledge Of Company X

Affected by the poor macro economy and the continuous downward trend of the stock market,the equity pledge crisis in the A-share market began to detonate one after another in the second half of 2018,and there have been voices of companies being forced to close positions.Although as early as 2015 to 2016 when the equity pledge market reached its peak,the regulatory authorities began to advance the regulatory guidelines for equity pledge risk and release the policy tightening signal,but as of April 2020,the market value of the controlling shareholder of the A-share listed company suspected of touching the liquidation line still reached nearly 2.21 trillion yuan.Affected by the expiration of a high percentage of equity pledges in recent years,how to control the equity pledge risk of the listed company's controlling shareholder is still a sustainable proposition worth discussing,and should continue to pay attention in the future.As a matter of fact,equity pledge as a financing method does not have a strong negative effect.For listed companies and controlling shareholders,it is more important to identify the root causes of risks and the fundamental transmission path of the equity pledge crisis,and to realize the control of risks from the source,so that stakeholders including financial institutions(pledgee),small and medium shareholders can effectively protect their rights,and the controlling shareholders of listed companies can also maximize its own behavior and realize the efficient operation and long-term development of the company.Therefore,this article starts from the current status of the risk of equity pledges of listed companies in China,and presents the current remaining risks in the equity pledge market.Taking the GEM listed Company X as an example,explores its motives for financing by equity pledges and analyzes the risk transmission path and risk cause behind the outbreak of the controlling shareholder's equity pledge crisis,aiming to discover the essential problems that exist behind the phenomenon,and then give targeted suggestions.Through the study of this typical case of Company X,the hidden focus behind the operation and the pledge process of the controlling shareholder of the listed company can be deeply explored.Furthermore,the establishment of a more complete risk control mechanism in the short-term resolution and long-term control can further clarify how to help all parties strengthen the risk control of the equity pledge of the controlling shareholder,and form an effective reference for other listed companies.