A Case Study On The Risk Of The Pledgee In The Pledge Of Equity In Jianghai Securities

With the continuous development and improvement of the capital market,equity pledges have widened the financing channels for SMEs due to their low cost and short time.More and more companies have chosen equity pledges for financing.2017 is the pinnacle of the development of the equity pledge market.During the period,the scale reached 6.15 trillion,and then fell to 4.32 trillion in 2018.The main body involved in equity pledge is becoming more and more extensive,and how to control the risk of equity pledge financing has become a concern of everyone.In order to analyze the risks and preventive measures faced by the pledgee in its equity pledge business,this article selects the equity pledge case between JiangHai Securities Co.,Ltd.and Orid Optoelectronics Co.,Ltd.for analysis.The article first defines the concepts of equity pledge and pledgee,combs the current status of the equity pledge market and transaction models,and adopts the guidance of basic theories such as information asymmetry theory,signal transmission theory,and principal-agent theory.Based on the literature research method and case study method,it analyzes the equity pledge cases of JiangHai Securities and Orid Co.,Ltd.,and points out that the pledgee faces the due diligence risk,equity value assessment risk,credit risk,A series of risks such as moral hazard,disposal risk,and legal risk,and pointed out that in the case of JiangHai Securities' equity pledge,there are still deficiencies in the operational process,unclear due diligence,and unclear source of repayment.Based on the above analysis,we propose concrete measures before,during,and afterwards to manage risks and precautions.Finally,it is pointed out that financial institutions that carry out equity pledges should enhance their own risk management,improve risk management levels,and improve risk management processes in order to ensure the sound development of their equity pledge business.But at the same time,it is also realized that in order for the equity pledge market to operate well,it is not enough to rely on the pledgee itself to raise awareness of prevention.It also requires the joint efforts of the pledgee and relevant regulatory agencies to jointly create a good trading environment.This article analyzes the equity pledge between JiangHai Securities Co.,Ltd.and Orid Optoelectronics Co.,Ltd.as a case,analyzes the risks faced by JiangHai Securities as the pledgee in the entire process of equity pledge,and proposes related preventive measures,with a view to other developments.The financial institutions of equity pledge business provide reference for preventing risks.