Equity pledge is based on the shares of the enterprise as collateral, usually mortgage loans from banks or borrow money from creditors, and pledge to a third party as collateral. The bank shall negotiate with the borrower according to the quality of the pledged shares and the borrower's financial and credit status, but the maximum pledge rate of the shares shall not exceed 60%. The adjustment of the upper limit of pledge rate is decided by the People's Bank of China and China Banking Regulatory Commission. The calculation formula is as follows: pledge rate = (loan principal/market value of pledged stocks) × 100% market value of pledged stocks = number of pledged stocks× average closing price of stocks in the first seven trading days. For example, Zhang San's shareholding ratio in Company A is 40%, and Zhang San is financing. 50% of this 40%, that is, 20% of the total shares of Company A, is used to pledge a loan to a bank. In addition to the procedural requirements of the pledge loan itself, this 20% share ratio needs to be registered with the industrial and commercial bureau where the company is located, and the relevant pledge procedures need to be improved. Then, Zhang San's equity pledge ratio is 20%, accounting for 20% of the total shares of Company A held by Zhang San. Equity pledge, also known as equity pledge, refers to the pledge established by the pledgee with his own equity as the pledge subject matter. According to the guarantee legal system of most countries in the world, pledge can be divided into chattel pledge and right pledge according to its subject matter. Equity pledge is a kind of right pledge. Equity pledge refers to the creditor's security interest in the pledged equity due to the establishment of equity pledge.

legal ground

"Standard Opinions on Joint Stock Limited Companies" Article 30 Shareholders may transfer their shares in accordance with the relevant provisions of the state and the articles of association, and may donate (public shares are not allowed to be donated), inherit and mortgage, but they shall not violate the following provisions: (1) For a company established by means of sponsorship, the transfer of company shares must be carried out between legal persons; In a company established by directional issuance, the shares can be transferred between the internal legal person and the employees according to the original holders. The shares held by employees within the company shall be strictly limited within the company and shall not be issued or transferred to any individual outside the company. One year after the establishment of the company, the directional issuing company established in the above two ways, when increasing capital and shares, expanding the scope of share subscription and transfer, if it needs to be transformed into a social issuing company, should be carried out in accordance with the examination and approval authority stipulated by the state and in accordance with the provisions of Article 34, and the shares should be renewed;