What does equity pledge mean?

Legal analysis: Equity pledge refers to the pledge behavior with the company's equity as the guarantee. Where shares that can be transferred according to law are pledged, the pledgor and the pledgee shall conclude a written contract and register the pledge with the securities registration agency.

Legal basis: Article 440th of the Civil Code of People's Republic of China (PRC). The following rights that the debtor or a third party has the right to dispose of may be pledged:

(1) Bills of exchange, promissory notes and checks.

(2) Bonds and certificates of deposit.

(3) Warehouse receipts and bills of lading;

(4) Transferable fund shares and equity;

(5) Transferable intellectual property rights such as the exclusive right to use a registered trademark, patent right and copyright;

(6) Existing and future accounts receivable;

(7) Other property rights that can be pledged according to laws and administrative regulations.