Study On Deal System In China's Second-board Market

Instauration of second-board market is a challenge task for the securities estate in China. The impetus of nasdaq market for American economy is focused attention by all countries. The pith of nasdaq market is dealer system, then one of the key questions in microcosmic design of second-board market in China is whether introduce dealer system into market. The thesis aims at solving this problem.Firstly, it analyses principle of auction system by marginal pairs, analyses principle of dealer system by inventory theory. By comparing the similarities and differences of two deal systems, it elicits: it has higher liquidity and less deal costs in dealer markets when capital stock is smaller and there are less shareholders in markets, and it has higher liquidity and less deal costs in markets with auction system when capital stock is bigger and there are more shareholders in markets.Secondly, it analyses different deal systems of second-board markets in all countries and elicits: at present the mainstream of deal system in second-board markets is auction system, and most of the deal systems in second-board markets come from main board markets because it reduces the instauration costs and is convenient for brokers and investors to trade off. Thirdly, it analyses a case: the growth enterprise market in Hong Kong, one of the rising second-board markets. By laboring the stair market and second market of growth enterprise market, it elicits: three main causes of bad behaviors in growth enterprise market in Hong Kong are singularity of structures in growth enterprise market; big proportion of net companies in growth enterprise market; bad achievements of net companies and small scale of growth enterprise market in Hong Kong.Finally, it demonstrates the feasibility of introducing dealer system into China's second-board market. It wouldn't increase market efficiency if we introduce dealer system into China's second-board market at once because China's economy is transferring, so it isn't suitable to introduce dealer system into China's second-board market now. It should adopt the auction system in second-board market like in main board market. But dealer system is a trend of deal system in securities markets in the world, so it brings forward some advices of developing dealer system in China.