Hello, the risks of equity pledge include:
1. Market risk under the fluctuation of equity value
Equity pledge is like equity transfer, and the pledgee accepts the equity pledge, which means the market risk of taking over the equity from the pledger. The frequency and amplitude of stock price fluctuation are much greater than the traditional physical assets used for guarantee. Whether it is the business risk of the pledged enterprise or other external factors, the final result is passed on to the price of the shares. When an enterprise is faced with operational difficulties and insolvent, the price of equity falls, and the income from equity transfer may not be enough to pay off debts. Although the law stipulates that the price of the pledged property is not enough to pay off the debt, the debtor will continue to pay off the insufficient part. However, due to the reality of small and medium-sized enterprises, the costs and benefits that lenders keep recovering are often disproportionate.
2. Moral hazard under the lack of credit of the pledgor.
The so-called moral hazard of equity pledge refers to the phenomenon that equity pledge may cause shareholders of the company to "circle money twice" or even empty the company. Because the value of equity depends on the value of the company, the preservation of equity value requires the pledgee to continuously evaluate the company. However, the governance mechanism of unlisted companies is relatively imperfect and the information disclosure is opaque. At the same time, because the third-party equity company is not the subject of the contract, it is difficult for the pledgee to continuously track and control its production, operation, asset disposal and financial status, which may easily lead the enterprise to empty the assets of the equity company and suspend the bank's creditor's rights through related party transactions.
3. Legal risks caused by imperfect legal system.
There are many defects in the current stock pledge system, which bring the following risks to the pledgee: First, the risks implied by the particularity of the priority right of compensation. The priority right of compensation stipulated in the equity pledge system is different from the general security interest and has its particularity. When the pledged company goes bankrupt, the equity pledgee does not have the right to exclude the collateral from the pledged equity, because the value of its equity is close to zero when the company goes bankrupt, and the right to claim the profit distribution and participate in the company's affairs contained in the equity is worthless, so the pledge cannot be realized. The second is the risk of foreign-related equity defects. China's Foreign-invested Enterprises Law stipulates that the registered capital authorization system is adopted to allow investors of foreign-invested enterprises to pay their contributions after the establishment of the enterprise, that is, the acquisition of equity is not based on the actually paid contributions, and shareholders of foreign-invested enterprises can pledge their unpaid contributions, which will bring risks to the pledgee.
4. Disposal risk under the incomplete equity trading market.
In equity pledge financing, if the enterprise returns the financing money irregularly, the proceeds from the disposal of the pledged equity will become the guarantee for creditors not to suffer losses. At present, although the property rights exchanges established in various places can transfer the shares of unlisted companies, they have been unable to form a unified stock rights transfer market for unlisted companies due to the relevant provisions of the Notice on Clearing and Rectifying Off-site Illegal Stock Trading Scheme (Guo Ban Fa [1998] 10). Due to the imperfection of the property rights trading market, it is difficult for most non-listed companies to form an equity pricing mechanism, and it is difficult for the pledgee and pledgor to reasonably evaluate the equity value. If the valuation is too low, the pledgor will not be able to obtain more financing; If the value evaluation is too high, the pledgor's pledge right will be difficult to be effectively guaranteed, which also limits the scale of equity pledge financing for small and medium-sized enterprises to some extent.
If you can give detailed information, you can give a more detailed answer.
Second, is it risky to pledge the company's equity to the bank?
I'll tell you what I know
Equity pledge financing is a means of financing. When financing or borrowing money, the borrower pledges some shares of the company to the borrower (here generally refers to financial institutions such as banks and trusts) in order to obtain funds to meet business needs or other needs. Listed companies generally adopt equity pledge financing. According to statistics, equity pledge is the financing channel of most small and medium-sized board and GEM listed companies, because of its small scale, lack of collateral, no government credit endorsement and limited financing channels.
Generally speaking, there is the risk of equity value fluctuation in equity pledge financing. Equity pledge means that the borrower transfers the equity to the lender. Once the borrower is unable to pay off the debt due to operational difficulties, the lender can sell the shares as agreed, giving priority to compensate his debt. However, the price fluctuation of equity is far greater than that of physical collateral. When listed companies are in trouble, the price of equity will also fall. At this time, even if the equity is transferred or sold, it is not enough to repay all debts. Therefore, due to the change of stock price, there is a certain risk of value fluctuation in equity pledge financing.
3. What are the risks of refinancing after the company's equity pledge?
Due to the recent sharp drop in the market, some enterprises with high pledge rate are always moving frequently. Last weekend, Shenzhen is said to have set up a special group to solve the listing problem of Shenzhen A shares from two aspects: creditor's rights and equity. Today, we will talk to you about the current situation of equity pledge of our big A shares, hoping to bring some inspiration to our friends.
Since we are talking about pledge, let's take a look at some shareholders who want to borrow money for various reasons (due to various restrictions, they cannot directly reduce their holdings in the secondary market). At this time, the best collateral is what they hold.
For example, a company's current share price is 10 yuan, and a major shareholder now holds 100 shares, which needs financing to ensure the company's development, but investors are not stupid. Although these shares are currently worth 1000 yuan, they are risky assets, and there is still a great risk of falling in the future mortgage period.
Therefore, for the sake of insurance, ordinary investors will only give shareholders about 50% of the funds. If the stock falls to about 80% of the original mortgage price in the future, it will touch the warning line. Generally speaking, if the mortgagor fails to replenish the bonds in time, if the stock price continues to fall below 70% of the original stock price, it will touch the compulsory liquidation line and be borne by the stronger mortgagor.
Fourth, ask the master, is it good or bad to pledge the company's equity to the bank?
Equity pledge is a means of financing, which is good in the short term and broadens the financing channels.
This still depends on the profitability of this company and the significance of this financing. Whether it is short-term revolving financing, the debt is high and the turnover is ineffective.
I think this kind of passive debt is likely to be high. Generally speaking, there may be a hostile takeover in the afternoon: listed companies are unable to maintain their share prices, besieged by hot money, and forced to sell their shares at low prices, thus completing the ownership change of listed companies.