Share pledge financing: raising capital by pledging listed shares
A plain explanation of share pledges for holders of listed shares in Asia-Pacific.
Last reviewed 2026-10-25
Education only. This is not financial, legal or tax advice, and it is not an offer. Terms vary by provider and case. Take independent advice before you sign anything.
The short answer
Share pledge financing means raising capital by granting security over listed shares you own while keeping ownership. Banks offer share pledge loans, usually with full recourse. Specialist providers offer share-backed financing that can be non-recourse, cross-border, with no personal guarantee.
Share pledge options compared
| Bank share pledge loan | Broker margin | Specialist share-backed financing | |
|---|---|---|---|
| Security | Pledge or charge over specific shares | Whole margin account | Agreed listed shares |
| Guarantee | Often required | Full recourse | Non-recourse, no personal guarantee |
| Concentrated holdings | Limited | Limited | Core use case |
| Use of proceeds | Broad | Mainly securities | Broad |
Share charge vs share pledge
The words are often used loosely. Legally, a charge and a pledge are different forms of security, and which one applies depends on the market and how the shares are held. Your lawyer will confirm which form the documents use; for a shareholder the practical questions are the same: what you keep, what you owe and what must be disclosed.
Disclosure
Directors, controlling and substantial shareholders may need to disclose a pledge in several Asia-Pacific markets. Our HKEX share pledge guide covers the Hong Kong position in detail.
Frequently asked questions
A loan secured by a pledge over specific listed shares that you continue to own.
Margin is a revolving account-based facility usually used to buy more securities. A share pledge loan is secured on specific shares and used more broadly.
You keep ownership. The documents set how dividends and voting are handled during the term.
Bank pledge loans are usually full recourse. Squadron Capital offers non-recourse, cross-border financing with no personal guarantee.
It depends on your role and the market. Take legal advice.
Considering a share pledge?
Squadron Capital provides non-recourse, cross-border financing with no personal guarantee, for listed holdings of USD 1 million or more. A Fast Term Sheet gives you indicative terms to compare.
Get a Fast Term Sheet