Research On Multilevel Capital Market For Accelerating China's Science & Technology Industrialization

The Science & Technology industry plays a very important role in today's economy. Countries all over the world, including China, attach importance to this field. After twenty years' reformation and opening, with the development of China's economy, Science & Technology industry in China had got a rapid increase, at the same time it meets a predicament in financing, which attributes to many issues, such as laws and regulations, supervision and control problems, mechanism for financing and investment etc.. During these factors, the construction of a multilevel capital market is the crucial problem.This paper is about how to promote Science& Technology Industrialization by establishing a multilevel capital market. We believe that financing troubles are always combined with investment problems, so when we analyze companies' financing plight, it is important to compare capital providers' requirements with demanders' requirements. We know different investors and demanders have distinct requirements, for the reason that capital market with single structure cannot fill the diversified requirements, so that we had to build a multilevel market to achieve the coupling of providers and demanders. Besides, in order to settle or relieve the contradictions between investor and Science& Technology Company, I present that we need an incentive compatibility mechanism during the process of investing and financing.Based on the above analysis, I brought forward a target frame for China's multilevel capital market, and give some suggestions of how to keep the market always effective and sound by establishing a perfect law and supervision &control system.