The China Securities Regulatory Commission has recently addressed the issue of shareholder supplementary pledge announcements, with a number of listed companies issuing such announcements. According to Yicai, as of press time, Xinqianglian, Tianhao Energy, Leon Technology, Oriental Materials, Yonganxing, Hengxing Technology, and several others have issued shareholder supplementary pledge announcements.
Interactive platforms have seen responses from many listed companies regarding stock pledge risks. Ningshui Group, Baili Electric, Taiji Co., Ltd., and others stated that there was no stock pledge, while companies such as Sealing Technology and Fubon Co., Ltd., clarified that there is no pledge by major shareholders. Haider, Fulongma, 712, and Nanwei Software stated that the pledge risk is within the controllable range and there is currently no risk of liquidation.
It was reported that as of February 5, the number of pledged shares in the A-share market was approximately 358.6 billion, accounting for 4.51% of the total share capital. The market value of pledged shares was approximately 2.277 billion yuan, accounting for 3.44% of the total market value.
The China Securities Regulatory Commission stated that efforts have been made to resolve stock pledge risks since 2018, resulting in a significant decline in overall risk. Although there has been an increase in supplementary pledge announcements by major shareholders, it is noted that supplementary pledge is a protective measure that does not result in forced liquidation. Additionally, securities firms and other institutions are being guided to increase the flexibility of liquidation lines to promote the smooth operation of the market.
Despite the increase in supplementary pledge announcements, the total amount of forced liquidation of stock pledge defaults this year is relatively small, accounting for a small proportion of the market’s daily turnover.
Overall, the China Securities Regulatory Commission is actively working to address stock pledge risks and ensure the stability of the market.