In fact, the failure of equity auction of small and medium-sized banks is not only a case in Qinghai, but also very common in many auction houses. In many auction platforms, it can be found that many small and medium-sized banks are auctioning their own shares for their livelihood. On some platforms, the auction information of these shares even reached more than 8,000. Although this auction phenomenon is very common, the results brought by the auction are not satisfactory, which also leads to the process of selling the shares held by banks.
These phenomena also show that the equity cannot be sold through the operation of shareholders, and it may even be smashed in the hands and cannot be converted into working capital, and the will and enthusiasm of these shareholders will decline. Because this has greatly lost their interests, especially some small and medium-sized banks have experienced operational disadvantages under the influence of the epidemic, and they cannot obtain greater profits by selling wealth management products and stocks, so the risks that small and medium-sized enterprises need to face need to undergo a great test.
In addition, the auction of equity also illustrates the risks that equity pledge needs to face to a certain extent, especially if the proportion of equity pledge of bank shareholders is much greater than 50%, then they need to have strong voting rights at some board meetings and shareholders' meetings. These rights also affect investors' investment, especially those shareholders who have committed some illegal acts. Once exposed, it will greatly affect the reputation of the bank, resulting in more shares, the more difficult it is to sell.