Equity pledge refers to the establishment of equity pledge, so that creditors can obtain the security interests of pledged equity. Pledgeable shares include shares of limited liability companies and shares of listed companies.
The difference is that the equity pledge of listed companies is equivalent to stock pledge, and the market is open and the price is transparent. It is not necessary to make a good announcement and registration, pay attention to the pledge limit, stock price fluctuation and control the pledge risk.
Both the Guarantee Law and the Property Law have clear provisions on equity pledge. In practice, there are relatively many equity pledges in economically developed areas, while in some remote areas with relatively backward economies, the managers of many registration agencies (formerly called Administration for Industry and Commerce, now called Market Supervision Administration) have never experienced or even heard of them, let alone know the process of pledge registration, which requires the pledgee or pledgee to communicate repeatedly and explore the practice.