Analysis On The Risk And Its Resolution Of Listed Company Under The Burst Of Stock Pledge

Equity pledge,as a financing method actively promoted by the country,has the characteristics of simple operation and no loss of controlling shareholder control.Beginning in 2013,pledge of equity has rapidly developed into an important financing tool for corporate major shareholders.With the scale of equity pledge expending,the burst of equity pledge occurs frequently,which not only brings risks to financial institutions,listed companies,controlling shareholders,etc.,but also affects the entire financial market.Due to the pressure from the regulatory authorities,the pledgee will not immediately sell pledged equity after the liquidation.Therefore,it is extremely important for the listed company and the pledged shareholder to actively resolve the risk after the liquidation.This article,from the perspective of a listed company,takes Clou Electronics as an example to study the risks when the shareholder faces a large-scale stock in liquidation and the resolution measures it takes,and proposes corresponding improvements.This article first summarizes the relevant literature from three aspects: the reasons for equity pledged liquidation,the risk of equity pledged liquidation,and the methods to resolve the equity pledged liquidation.The article also focuses on pledge standards and information disclosure-related equity pledge systems,introduces definitions of liquidation,calculation of liquidation points,and reasons for liquidation,and uses a flowchart to sort out the mechanism of various risks under liquidation,and also summarizes the current measures to resolve equity pledge liquidation,which laid a theoretical foundation for the full text.Then,this article uses Clou Electronics as a case to analyze the risk of liquidation and its solution.First,it introduces the background of the case,including the company’s development history,the company’s equity pledge and the situation of liquidation in each year.Since 2015,the share pledge ratio of Clou Electronics has been at a high level.In June 2018,Rao Luhua,the controlling shareholder,pledged all stocks,which triggered a liquidation.After analyzing the case,this article researches the reasons for Clou Electronics’ controlling shareholder’s liquidation,the risks it faces after the liquidation,the mitigation measures and the problems it brings.The study concluded that: the high proportion of controlling shareholders’ pledge,the company’s poor operating conditions,and irrational asset structures led to this liquidation;the risks faced by Clou’s short-outs such as refinancing risks and marketrisks are universal and representative.Clou Electronics successfully resolved the risk of liquidation through the suspension of stock trading and the introduction of strategic investors,and formed a new governance structure.However,after the resumption of trading,the company’s stock price continued to decline,and the equity was gradually invaded by state-owned enterprise investors,which brings potential risks.Through case study,this paper finds that the controlling shareholder’s equity pledged liquidation has brought various risks to the listed company.In this regard,listed companies can resolve risks through market-oriented divestiture of lossy assets,application for government special funds,and introduction of state-owned assets.However,resolution measures are accompanied by potential risks,and listed companies should identify and prevent them during the implementation process.Finally,based on the conclusions,this article puts forward suggestions from the level of listed companies and the government,such as the targeted use of "bail-out funds" and the improvement of the equity pledge disclosure system.