Abuse Control Caused By Stock Pledge Of Controlling Shareholders In Listed Companies

In 2018,the China Securities Regulatory Commission(CSRC)released a official document which strictly restricted the stock pledge repurchase.Therefore,the risk of default of equity pledge of listed companies has been significantly alleviated since then.However,the articles hereof cannot solve problems from the corporate governance caused by equity pledge: in the stage of equity pledge,the governance power of the controlling shareholders to the listed companies are not decreased,and the economic risks arising from control power are stripped off,which inspires the controlling shareholders to seek the private interests of control,as well as damage the interests of medium and small investors.After equity pledge,the controlling shareholders are more likely to control the company to make business decisions which are not conducive to long-term development and the interests of medium and small investors,to seek private interests of control.