Securities And Otc Market Research

Under the Market Economy, resource and finance is disposed mainly by the capital market, however, the single-level capital market could hardly meet for various bodies in the activities of investment and financing, and the Multi-level Capital Market which distributes resource between levels can satisfy the needs of bodies mentioned before. Taking a sweeping view of countries and regions with developed capital market, most of which have established a capital market system with marked levels and well connected joints, such as the capital market in America, which includes the Main Board Market, the Growth Enterprise Market, and also involves the Over The Counter (hereafter as the OTC) market (i.e. the OTCBB Market, the Pink Market, the PORTAL Market, and so on).As for the improvement in the Market Economy and the great development in capital market in our country, it requires to speed up the establishment of the Multi-level capital market. In 2004, the Nine Comments about Push the Reformation of Capital Market by the State Council clarified expressly the purpose of cultivating Multi-level Capital market. To push the construction of the Multi-level Capital Market, Shenzhen Stock Exchange introduced the Small & Medium Enterprise Board Market in June 2004. Then in Mar. 2008, the CSRC published the Measures for the Administration of Initial Public Offering and Listing of Stocks on the Growth Enterprise Market (Exposure Draft), which notified that the Growth Enterprise Market, which had been prepared for about 10 years, would soon open in Shenzhen Stock Exchange. And till now, added with the Stock Transfer Agent Services, which is widely viewed as the OTC Market in China, it has basically formed our Multi-level Capital Market system, involving the Main Board Market, the Small & Medium Enterprise Board Market, the Growth Enterprise Board and the OTC Market.While as the major formation of Multi-level Capital Market, the OTC market in China is quite weak, slow developed and unclearly positioned, it has been the weakness of Multi-level Capital Market. Hence, strengthening the establishment of the OTC market, which is considerer as the foundation, is the key issue to develop our Multi-level Capital Market mechanism.Practice in every country shows that the OTC market, which is the basis of stock market framework, takes great part in avoiding financial risks, accelerating capital socialized and pushing the development of fresh enterprises, an so on. Therefore, it is particularly necessary and urgent to construct the OTC market mechanism which is suitable to our concrete nation situation, by referring to abroad practical experience of constructing OTC market and meanwhile associating with our reality. This is also my objective in the present endeavor.This thesis adopts the comparative research method, the historical research method and the demonstration research method to make a systemized study in our country's OTC market mechanism. First, discussing the concept and parameter of the OTC market, analyzing the historical resolution of the OTC market and doing some specific study in abroad OTC market and related systems in U.S., Taiwan, Japan and some others.Second, making a thorough inquiry into the tough history of our OTC market and main problems existing in the development of our OTC market, analyzing the necessity of the existence for the OTC market and the realistic conditions now in China for establishing the OTC market. At last, putting forward the idea and concrete system design of establishing the OTC market system with characteristics of levels. The main content as follows:Ⅰ.The OTC market is the general title for the stock exchange places outside the exchange market. During its growth, it has experienced many stages such as the spontaneous OTC market, the stage of being limited prohibited, the stage of being admitted by legislation and then making a great progress, and so on. Comparative to exchange market, the OTC market bears more characters, such as no fixed place for concentrated exchange, flexible ways of exchange, distinct kinds of exchange object, basing on the market-maker, unique mechanism to scatter risks, and so on. By studying the abroad OTC market in U.S., Taiwan, Japan and others, it could conclude the general law and pervasive concept mode as well as concrete mechanism of developing the OTC market, and that's important reference for our country.Ⅱ.The development process of the OTC market in our country is tough-from the sprout to being flourishing, then to being limited and banned, and finally being restored by steps. About the developing form, there're the spontaneous market, the systematic market as well as the black market outside the framework, and so on. Although there has a boom period of our country's OTC market, for some reasons like the legality of the OTC market not being acknowledged, the lack of legislation in developing the OTC market, the non-market operating, the single form and lack of levels, the prevalence of the underground exchange, as well as the managements' incorrect recognize of the OTC market, and so on, the OTC market had always been limited and prohibited.Ⅲ.The practice manifests that, as the main part of the Multi-level Stock Exchange market, the OTC market does have its reason and necessity to exist. It takes great effect on enhancing the financing channels for the Small & Medium Enterprises, speeding up the capitalization of the social finance, pushing the equity flows of the public limited company not listed, promoting the bond market, establishing the withdrawal mechanism of risk investment, perfecting the delisting system, promoting the regional economic, and so on.俄especially now in our country, under the circumstance of a strong desire for investment and financing and a limited stock exchange capacity, it's very urgent to cultivate the OTC market and extend the stock exchange capacity to satisfy bodies of investment and financing with various grades and preference. By analysis of some aspects like the requested legal environment of establishing the OTC market, the practice of home and abroad OTC market operating, the experience of supervising stock market accumulated at home, listed resource and investment demand and so on, and then comes to the conclusion that China has basically formed the conditions of establishing the OTC market.Ⅳ.Similar with the characteristics of levels in the stock market, the OTC market is the same. During the course of establishing the OTC market with levels, we should base on our nation's conditions and respect our practical situation, make full use and reformation of existing Stock Transfer Agent Services and Property Rights Trading System to construct our OTC market. By transforming the Stock Transfer Agent Services to set up a national OTC market which is concentrated offer & scattered done; by transforming existing Property Rights Trading market to set up a unified and connected & scattered done regional OTC market and a Property Rights Trading market, which puts the non-standardized financial property as the trade object, and then to form a marked levels and well connected OTC market with characteristics of levels. Moreover, we should make full development of the system environment demanded by the OTC market, on the basis of the summary and reference of the experience in developing the OTC market at home and abroad, make clearly the position of the OTC market, establish reasonable market access system, suitable trading system, mature market-maker system, perfect information disclosure system and effective regulatory system.