Whether shareholders pledge shares is good or bad depends on the specific situation of the company: 1, asset-liability ratio: the higher the pledged shares, the company's solvency is likely to be unqualified; 2. P/E ratio: to judge the optimism of the company's operation; 3. Liquidity rate Whether the current capital turnover is healthy and whether the equity pledge will make up for its liquidity. As an important way of financing. When the company decides to invest in a project, when calculating the cash flow, yield, capital cost and net present value within the acceptance range, shareholders can obtain loans through bank stock pledge, so that the operating and investment funds can be transferred normally, and huge profits will be brought after the project is completed. This is a great benefit, and fundamental analysis has a negative impact. Equity pledge can't determine the trend of stocks in a short time. Many people think that companies may want to borrow money because of unhealthy solvency or limited liquidity, and the stock price may fall in a short time, which becomes negative. According to the Company Law of People's Republic of China (PRC), the shares held by shareholders can be transferred according to law. According to the provisions of the Civil Law of People's Republic of China (PRC), if the shares that can be transferred according to law are pledged, the pledgor and the pledgee shall sign a written contract and register the pledge with the securities registration agency. The pledge contract shall take effect from the date of registration. After the stock is pledged, it may not be transferred, but it may be transferred with the consent of the pledger and the pledgee through consultation.

Company Law of the People's Republic of China

Article 440th _ 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.