A Research On The Withdrawal Of China's Venture Capital Based On A Innovated OTC Market

From the experience in some developed countries, except for the main stock market, a fully functional and well-regulated OTC market is essential for the development of China's venture capital sector. Meanwhile, owing to the sluggish economy, the defective stock market system, the enormous expense of the listing procedure and the firm regulation of company information revelation, it is not practical for the secondary market, with limited market capacity, to act as the main source for the withdrawal of venture capital. Therefore, the OTC market gets essentially necessary.Using the Structure and Function Theory of systems analysis and the comparative method, this article analyses the problems confronting the venture capital and the role of a national OTC market in the withdrawal of the venture capital and by comparison with the experience of America and Taiwan, points out the bottleneck of China's venture capital development and finally puts forward an innovated national OTC market system.The theme paper is divided into five chapters. The first chapter discusses the problems confronting the venture capital enterprises during their investment, management and withdrawal. The second chapter analyses the role of capital market in venture capital sector, the basic knowledge of modem OTC market and the inner relationship between the modem OTC market and the venture capital. The third chapter analyses the special feature, the regulations and the rules of the OTC markets in America and Taiwan. The forth chapter concludes the experience and lessons of China's traditional OTC market development and especially analyses the existing problems of technology property trading market. The fifth chapter brings forward the strategic plan to set up an innovated OTC market and examines the roles of the trade dealers, the intermediate institutions as well as the supervising departments.