Research on the Financing of Corporate Equity Pledge in the OTC Market

In recent years, equity pledge financing has developed rapidly in the NEEQ.In 2017, the number of equity pledges in NEEQ reached a new high.After a company joins the NEEQ, its information disclosure has been strengthened, management has become more standardized, the liquidity of enterprises' shares has been enhanced, and equity pricing has been fairly evaluated.Therefore, equity pledge financing has important practical significance for these companies in the development.This paper takes Xinwei Science and Technology as an example to analyze and study its equity pledge financing mode.Firstly, the article gives a general introduction to the NEEQ, mainly focusing on the development and financing situation of the NEEQ.Then it analyses the basic situation and financing situation of Xinwei Science and Technology.From the aspects of financing mode, rationality, feasibility, effect and risk of equity pledge financing, it finds that equity pledge financing is comparable to other financing parties.The advantages of this model can provide some references for the future improvement and development of equity pledge financing function in NEEQ.