Analysis Of Influencing Factors Of The Risk Of Equity Pledge Closing Positions Under The Background Of Deleveraging

With the development of the securities market,China’s equity pledge financing business began gradually expanding in the 1990 s.In 2013,the on-site market started to operate,more financial institutions such as securities companies also participated in the transaction,and the equity pledge market further developed,with a far-reaching impact.The equity pledge business has broadened the financing channels of enterprises,but there are also certain risks.On the one hand,there is a risk that the large shareholder hollows out the equity pledge,on the other hand,there is also market risk,liquidity risk,and the risk of being forced to close the position.At this stage,under the background of deleveraging in my country,due to tightening market supervision,liquidity narrowing,and overlapping economic downside risks,all risks of equity pledges have gradually begun to be exposed,of which the liquidation risk is most worthy of attention.In the context of deleveraging,equity pledge as a type of equity financing is favored by various market participants,and due to the development of the on-market market,the number of participants in various financial institutions has increased.High,once the position is closed,it is easy to cause cross-risk,and then there is a hidden danger of systemic risk.Therefore,this article focuses on discussing the risk of equity pledge liquidation and its influencing factors in the context of deleveraging.First,based on the existing literature,the concept,role,development status and related risks of China’s equity pledge are researched and analyzed,and then the impact of various risks Factors for specific investigation.The main part of the paper expounds the deleveraging process in China,researches and explains the concepts and development of equity pledge,combined with deleveraging background identification and sorting out various macro and micro risk factors,to clarify the equity pledge under the background of deleveraging in China influences.Then define the risk of closing the equity pledge and construct a suitable measurement method.The closing risk of equity pledge is greatly affected by the stock price.When the stock price of the pledged object falls below the warning value,there is a risk of closing the position.This paper selects sample enterprises from the steel,basic chemical industry,light industry manufacturing,medicine,food and beverage and media industries for model construction and obtains general conclusions.Finally,this article screens and analyzes the industries most affected by the deleveraging cycle,and then combs the equity pledge business of listed companies in the industry and selects Junzheng Group as a case company for research and analysis.In light of the empirical analysis results,there are several enlightenments: First,companies should optimize their debt structure,improve profitability,and actively carry out effective corporate governance;Second,local governments should actively guide the allocation of funds and further innovate financing channels.The research in this paper shows that the risk of equity pledge closing is greatly affected by macro factors in the context of deleveraging.The leverage ratio is positively related to the closing risk.The higher the leverage ratio,the greater the closing risk;the market fundamentals are negatively related to the closing risk At a time when the market is booming,the risk of equity pledge closing is low,and vice versa;financing costs are positively related to closing risk.At a micro level,net profit is negatively correlated with equity pledge liquidation risk,and companies with strong profitability have lower liquidation risk;current liabilities are positively correlated with liquidation risk.The higher the current liability,the greater the liquidation risk;the pledge ratio is related to liquidation The position risk is positively correlated.The higher the pledge ratio,the higher the equity closing risk.The price-earnings ratio is negatively related to the position closing risk.The higher the price-earnings ratio,the lower the position closing risk.