2. Pledge is a security interest. That is, the largest controlling shareholder of a listed company uses its own stock (equity) as collateral to apply for a loan from a bank or provide a guarantee for a loan from a third party.
3. To release the pledge is to redeem the pledged shares in the settlement company, which reduces the company's asset risk.
Legal basis: Article 427 of the Civil Code of People's Republic of China (PRC) establishes the pledge right, and the parties shall conclude a pledge contract in writing.
A pledge contract generally includes the following clauses:
(1) The type and amount of secured creditor's rights;
(2) The time limit for the debtor to perform the debt;
(3) The name and quantity of the pledged property.
(4) the scope of the guarantee;
(5) Time and method of delivering pledged property.