The Research On The Cooperation Of Hong Kong Growth Enterprise Market And Shenzhen Small & Medium Enterprise Board

Capital market integration is in the form of M&A between different countries' exchanges in the world's equity market. A pity is that there is not an effective and complete equity market to support Chinese development. This paper hopes to treat the cooperation and integration of mainland and Hong Kong's second board markets as the first step to build a complete capital market in Great China.The author applies financial regional movement theory as the basic theory. After discuss the current issues of Hong Kong Growth Enterprise Market and Shenzhen Small & Medium Enterprise Board, the author analyzes the necessity and possibility of the cooperation of the two boards from different aspects. At last she gets three cooperation models and uses the basic theory to study the inherence of the M&A of the two boards.The author's idea is: in the short time as the great difference between the two boards, Contractual Union model is proper. In the mid-term as the maturity of the micro-market themes and the financial environment, it's better to apply Interest Binding model. In the long run, as the economic integration in China and the movement between the high grade financial region Hong Kong and the low grade financial region Shenzhen, the best model is M&A. The great China owns an effective and complete second board market to support economic development finally.