Legal analysis: when the people's court carries out litigation preservation or execution. The freezing of shares refers to the compulsory measures taken by the people's court to restrict the shareholders from withdrawing shares or transferring their own shares. The main purpose of this measure is to prevent improper loss of equity income. The internal interests of listed companies are damaged. In this process of stock freezing, the shareholder status of stock holders has not been denied. Shareholders also enjoy the right to return shares and other rights and interests.

Legal basis: Article 242nd of the Civil Procedure Law of People's Republic of China (PRC), if the person subjected to execution fails to perform the obligations specified in the legal documents according to the notice of execution, the people's court has the right to inquire about the deposits, bonds, stocks, fund shares and other properties of the person subjected to execution. The people's court has the right to seal up, freeze, transfer or change the property of the person subjected to execution according to different circumstances. The property inquired, sealed up, frozen, transferred or changed in price by the people's court shall not exceed the scope of obligations that the person subjected to execution shall perform. When the people's court decides to seal up, freeze, transfer or change the price of property, it shall make a ruling and issue a notice of assistance in execution, which the relevant units must handle.