Interim Measures for the Pledge of Stock Right Registration recently issued by Industry and Commerce Administration Bureau of Zhejiang Province provided a solution for the financing difficulty of small and medium sized enterprises who can apply to the bank for the mortgage loan in accordance with their stock rights in hand, turning the "inactive" stock rights into "active" capital. The implementation of the said document offered a new channel for the enterprise financing. It is known that there are more than 300,000 joint stock enterprises in Zhejiang, and through pledge registration of stock rights, the enabled capital theoretically is expected to jump over RMB 1000 billion.
