Research On The Risk Of Equity Pledge Of Controlling Shareholders From The Perspective Of The Pledgee

The gradual development and improvement of the capital market has brought about the development of equity pledges,Equity pledges have broadened the financing channels by virtue of their low financing cost and speed,and more and more companies and individuals are using equity pledges for financing.However,after the extensive equity pledging crisis,the industry is quite concerned about the risks and economic consequences of equity pledges.In this paper,the case of equity pledge between Haitong Securities and La Chapelle is selected and analyzed from the pledgee’s perspective to reveal the risks and preventive measures faced by the pledgee in the equity pledge business.The current status and transaction patterns of the equity pledge market were firstly reviewed.Based on the basic theories such as information asymmetry theory,signaling theory and principal-agent theory,the literature research method and case study method were adopted to analyse the equity pledge case of Lachapelle,thus pointing out that a series of practices of the pledgee in the process of equity pledge expose the company and other stakeholders,including the pledgee,to a series of risks such as impairment and disposal risks,market risks and legal risks.On the basis of the above analysis,specific measures and precautions are proposed to prevent,control and manage the risks in advance and afterwards.Finally,it is pointed out in the paper that financial institutions should focus on enhancing their ability to counteract risks when conducting equity pledge business.However,for the good operation of the equity pledge market,it is not enough to rely on the pledgees themselves to raise their awareness,but also requires the joint efforts of pledgees and regulators to maintain a good market order.This article is intended to provide reference for other financial institutions conducting equity pledge business to prevent equity pledge risks.