Research On The Development Of The Second Boards In The World And The Choice Of China

Second Board Market in our country is planned to be established by Shenzhen Stock Exchange this year, which has been discussed whether should be set up since ten years ago. However, the frustration of the second boards in the world in the year of 2000, as well as the relatively low level of the economy in China, defers the establishment of Chinese second board. Nowadays, the Chinese economy is developing rapidly and has reached a higher level: There are a great number of small and medium-sized enterprises, especially high-tech enterprises, which are high-quality resource for second board; Chinese securities market is becoming mature after almost twenty-year development. Securities markets in many countries compete with each other for high-quality listed companies. Many Chinese excellent companies have been listed in foreign securities exchanges. Therefore, second board market needs to be set up in China as soon as possible.Most of the literature concerning second boards focuses on the successful ones, especially on NASDAQ. Theses literature studied the success of NASDAQ in terms of its operation mechanism and management mode, etc. Little research has been done on the failing ones. Research on both successful experience and lessons of international second boards is carried out in this thesis. General development of international second boards is studied, as well as typical examples. This thesis also combined exterior and interior analysis. Exterior study, which is based on believable data, describes the general development of international second boards. Interior study focuses mainly on the volatility of main second boards in the world, such as NASDAQ, AIM, KOSDAQ and Neuer Markt.Small and medium-sized board in Shenzhen securities exchange is also studied in this thesis. Although it is just four years since it was set up, the exchange developed rapidly. We studied the volatility of the small and medium-sized board and found that it was quite different from that of the ones in the developed countries. "Good news" and "bad news" play equal roles in the stock markets. However, "bad news" has a greater influence on the second boards in developed countries.The purpose of this thesis is to abstract some useful suggestion, which is proposed in the last part of this article, for the coming second board in China through studying the existent and failed ones in other countries. Conclusion of this thesis suggests that the Second Board Market in our country should be independent from the Main Board Market, characterized by diversified structure and ensured by strict transaction and supervision mechanism, which are based on order-driven institute.