Research On Zhengbang Technology Risk Based On Controlling Shareholder Equity Pledge

China clearly pointed out the issue of legalization of equity pledge financing of listed companies in the "Guarantee Law" promulgated in 1995.Although equity pledge has not developed for a long time in China,it has become one of the preferred financing methods for controlling shareholders due to its advantages of efficiency,convenience,and low cost.In recent years,with the dramatic changes in the financial market and economic environment,the characteristics of listed companies,such as large capital demand,high and unstable value of current assets,have become increasingly prominent.As a relatively flexible financing method,equity pledge is increasingly widely used in listed companies.While providing sufficient funds for controlling shareholders,it may also lead to the abuse of some equity interests,which is detrimental to the healthy development of listed companies.Due to the complexity and risk of equity pledge,the company faces enormous risks.Therefore,how to prevent the risks brought by equity pledge has become the focus of current research in China’s securities market.Through comprehensive analysis of the behavior of controlling shareholders’ equity pledge in listed companies,it is helpful to better assess the risks of equity pledge,thereby taking effective risk management measures to ensure that the legitimate rights and interests of shareholders are not lost.In addition,it can also make controlling shareholders aware of the impact of equity pledge on the development prospects of listed companies,thereby helping to improve company performance and protect the legitimate rights and interests of investors.This article takes Zhengbang Technology Co.,Ltd.,a pig giant,as a case study,and selects equity pledge data from 2016 to 2021 as evidence to study the potential risks of equity pledge financing by controlling shareholders of listed companies.Based on the analysis results,suggestions and measures are proposed.Firstly,it introduces the basic situation of Zhengbang Technology,summarizes the process of equity pledge of controlling shareholders of Zhengbang Technology in the past six years,summarizes its characteristics,and analyzes the motivation of controlling shareholders’ equity pledge;Secondly,it analyzes various risks existing after equity pledge,including market risk,financial risk,and disposal risk;Finally,based on risk analysis,the corresponding reasonable risk prevention countermeasures are proposed.The research results show that the equity pledge behavior of Zhengbang Technology’s controlling shareholders may bring market risk,financial risk,and equity disposal risk to the company.Therefore,in order to avoid the risks caused by the equity pledge of controlling shareholders,it is necessary to optimize the equity structure,strengthen information disclosure and external supervision,strengthen the company’s internal control,and improve the risk prevention and control capabilities of stakeholders.