To put it simply, equity pledge means using the stocks (equities) held by "stock holders" as collateral to apply for loans from banks or provide guarantees for third-party loans.

Equity pledge, also known as equity pledge, refers to a pledge established by the pledger using his equity as the subject matter of the pledge. According to the provisions of the legal systems on guarantees in most countries in the world, pledges can be divided into chattel pledges and rights pledges based on the subject matter. Equity pledge is a type of rights pledge. The creditor obtains the security interest in the pledged equity due to the establishment of equity pledge, which is an equity pledge.

Extended information

Relevant regulations on equity pledge:

1. It is clear that the financing party must not be a financial institution or its products, and the financing should be used in the real economy Production and operation are managed with a separate account. The initial transaction amount of the investor's first transaction shall not be less than 5 million yuan (the regulations of the Shenzhen Stock Exchange are that the minimum transaction amount of the investor's first transaction shall not be less than 5 million yuan), and each subsequent transaction shall not be less than 500,000 yuan. , funds and bonds are no longer recognized as initial pledge targets.

2. The upper limit of the equity pledge ratio shall not exceed 60. The pledge ratio of a single securities company and a single asset management product as a financier for a single A-share stock shall not exceed 30 and 15 respectively. A single A-share stock market The overall pledge ratio does not exceed 50.

Baidu Encyclopedia - Equity Pledge

People's Daily Online - New regulations on equity pledge will be implemented from now on, and the overall risks of listed companies are controllable