Equity pledge is generally not the same as a loan, but it can be regarded as a loan if it provides guarantee for the pledgor's debt. Equity pledge refers to the pledge established by the pledgee with the equity owned by him as the pledge subject matter, while equity pledge loan refers to the loan issued with the equity held by the borrower or the third party as the pledge according to the pledge method stipulated in the Civil Code.

legal ground

Article 443rd of the Civil Code of People's Republic of China (PRC).

Where a fund share or equity is pledged, the pledge right shall be established at the time of pledge registration.

After the pledge, the fund share and equity shall not be transferred, except that the pledgor and the pledgee reach an agreement through consultation. The pledgor shall pay off the debts in advance or deposit them with the pledgee with the proceeds from the fund share and equity transfer.