Case Analysis On Equity Pledge Financing Of Huayi Ecological Landscape Architecture Company In The NEEQ

Since the expansion of the NEEQ 2013,the number of companies listed on the NEEQ has increased as the entry barrier and cost of the NEEQ is low.However,the NEEQ also exposed a series of problems,such as small transaction volume and poor liquidity,and its own limitations made the NEEQ unable to exert their financing functions.In the past,the main financing method for the new listed companies was private placement.However,in recent years,it has been more difficult to increase the number of private placements,limited funds are raised,and procedures have become cumbersome,resulting in the disappearance of private placements.After the SMEs were listed on the NEEQ,as the corporate governance and financial status of the company became better and better,the equity value and liquidity of the company were also improved.This kind of change made it possible to negotiate the equity pledge of the NEEQ.Compared with the private placement,the NEEQ new financing method has simple procedures,and the financing time and amount are relatively flexible.In recent years,the number of equity pledge financing transactions has grown rapidly.At the same time,there have been some problems after the explosion,such as the fact that Feng Shengyang's stock pledge financing has been out of control.Therefore,it is worthwhile to analyze the advantages and problems of the NEEQ equity pledge financing method.Promote listed companies to choose the right financing method for companies to supplement liquidity.This article selects Huayi Ecological Landscape Architecture company as a case enterprise and mainly adopts literature research methods and case analysis methods to analyze and discuss.The thesis firstly describes the background and significance of the financing of equity pledge of Huayi Ecological Landscape Architecture company,sorts out related theories and literatures,and then introduces the main business of Huayi Ecological Landscape Architecture company,the financing needs and the financing situation after the listing of the NEEQ.In the most important case analysis section,the analysis of financing drivers,financing cost analysis and legal feasibility analysis were conducted,highlighting the advantages of equity pledge financing and the rationality of case companies choosing equity pledge financing methods.It also analyzes the effect ofHuayi Ecological Landscape Architecture company's equity pledge financing and the risks that may exist in using this financing method.Through detailed analysis of the case,the paper aims to provide a comprehensive perspective on the way of equity pledged financing,to provide reference for other companies using equity pledge financing.At the end of the paper,there is summary and improvement proposal for this financing method.