Legal analysis: (1) Share pledge of limited liability company. Where the equity of a limited liability company is pledged, the pledgor and the pledgee shall conclude a written contract and register the pledge with the administrative department for industry and commerce. The pledge contract shall take effect from the date of registration. (2) pledge of shares of a joint stock limited company. Where the equity of a joint stock limited company is pledged, the pledgor and the pledgee shall conclude a written contract and register the pledge with the administrative department for industry and commerce. The pledge contract shall take effect from the date of registration. (3) Equity pledge of foreign-invested enterprises. Where the equity of a foreign-invested company is pledged, it shall be approved by the original company's examination and approval authority before it can go through the pledge registration. Foreign-invested enterprises include Chinese-foreign joint ventures, Chinese-foreign cooperative enterprises and wholly foreign-owned enterprises.
Legal basis: Article 443rd of the Civil Law of People's Republic of China (PRC) pledges the fund share or equity, and the pledge right is established upon the completion of the pledge registration. After the pledge, the fund share and equity shall not be transferred, except that the pledgor and the pledgee agree through consultation. The pledgor shall pay off the debts in advance to the pledgee or deposit the proceeds from the fund share and equity transfer.