The Construction Of Otc Market In Chinese Multi-level Capital Market

As an important part of multi-layer capital market, foreign well-developed capital markets pay much attention to the development of OTC market. However, in China, because of the special conditions, the development of the OTC market has been very slow. With the economic development, the domestic gradually recognize that the establishment of multi-layer capital market, in particular the development of the OTC market plays an important role in economic development. On March 17, 2008, the State Council approved the establishment of non-listed public company equity market in Tianjin Binhai New Area. OTC settled in Tianjin is an important step for a sound and comprehensive multi-layer capital market system in China. It is a useful addition to the motherboard, the SME board and the GEM, which reflects our investment and financing needs of the general concerns of SME.In this context, based on the general theory of multi-level capital market and the OTC market, the paper puts forward the basic framework of the OTC market and the realization of the path, with the reference to other international successful experiences in OTC markets and combined with the actual situation of our capital market system.Based on the comparative analysis of the major OTC markets and the historical process of the OTC market in China, we spell out a macro-profile of the OTC markets: (1) Multi-level capital market system is the production of the socio-economic development, the development of the OTC market as a multi-level capital market should be consistent with the inherent objective laws. (2) From the historical evolution view of the mature markets, the development and improvement of multi-level capital market is a gradual process, first, the OTC market, then, the inside, at last, the OTC market and the inside together. (3) The development and improvement of the multi-level capital market system needs market environment, enterprise development environment and system environment. Then from the development of China's OTC market's historical, social, economic circumstances, we believe that the OTC market as an important part of the multi-level capital market system in China, based on the full advantages of international experience in the mature markets, should meet the requirements of market economy and market mechanisms. We envisage the overall design ideas of China's OTC market, that is, the establishment of Tianjin Equity Exchange, as the main national OTC market, its regional branches as the regional market. We also propose a specific system design.