According to the Guarantee Law and Rural Land Contract Law,the current legislation in China prohibits the mortgage of land contract management right acquired by Family Contract.

This paper, by analysis, confirms that commercial house mortgaging is amore flexible and effective form developed by combining pledge of obligation and feature of real estates industry.

Then the paper puts forward the following suggestions on how to reconstruct the pledge of the share rights institution:perfecting the pledge of the share rights legal system;developing the capital market;con- strueting the management methods of the pledge of the share rights in commercial banks,and optimizing corporate governance.

This article introduces the basic concepts and legal characteristics of pledge of shares and pledge of stocks,analyzes certain legal issues in the practice of pledge of stock rights and puts forward resolving measures accordingly.

The pledge of stock rights is an important type of the pledge of rights,and also an important kind of financing means of the investors.

This paper describes the state of stock pledge in China s capital markets,explains the risks harm generated from stock pledge to banks based on cases study and theoretical analysis.