| The Study purposeWith the approach of knowledge-based economy, people in China come to reassess the role of high-tech industry played in the country's economic and industrial structure and are now exploring how to accelerate the development of high-tech industry in China. Experience of the United States and other countries indicate that venture capital is a key. Therefore we must cultivate appropriate market and legal environment in favor of venture capital's development, among which establishing a Second Board Securities Market (hereinafter referred to as "Second Board") is necessary as an exit for venture capital. As a matter of fact, China has decided to launch a Second Board within this year. The purpose of this thesis is to make deep research of supervision and regulation of other Second Boards and provide some useful reference for the establishment and supervision and regulation of the Second Board in China. The Study MethodThe thesis resorts to normative and positive analysis. Comparing the operation, supervision and regulation of the typical Second Boards in the world, the thesis explores some general rules in the supervision and regulation of the Second Board. The thesis incorporates the general theories of government supervision and regulation while making theoretical analysis of the supervision and regulation of the Second Board. In the end, the thesis presents the author's viewpoint and advice for the establishment, supervision and regulation of the Second Board in China. The Study ConclusionThe main body of the thesis consists of five chapters.Chapter 1 clarifies the definition of Second Board and analyzes the necessity of its existence. Though frequently appearing on media since 1998, Second Board market is not yet clarified. From the perspective of listing standard and targeted servicing companies, the thesis defines Second Board as a financing market specially servicing the small and medium-sized enterprises and newly established high-tech companies. Second Boards develop rapidly due to its indispensable function in providing financial support for enterprises, providing an alternative investment market for investors, and upgrading national economy and high-tech industries. Though there have been arguments in China regarding the time for establishing the Second Board, it is with no doubt that we shall establish our own Second Board. Chapter 2 elaborates the operation, supervision and regulation of several typical Second Boards. In United States, NASDAQ and American Exchange together constitute the Second Board. The Second Board in Japan has the same dual structure as that in United States. In Europe, EASDAQ accepts listing application from enterprises in nearly all countries in Europe and has been established in imitation of NASDAQ and there is also a Second Board Market in England named as AIM (Alternative Investment Market). GEM (Growth Enterprises Market) is launched in Hong Kong in 1999 and is typical as a Second Board set up by a stock exchange. Chapter 3 expounds the mechanism of supervision and regulation of a Second Board. From the specific measures in several countries, Chapter 3 explores general rules. The goal of supervision and regulation of Second Board is to protect investors and enhance market efficiency, same as that of Main Board Markets. However, the supervision and regulation of Second Board Market follows different principles. The regulator shall be independent, and persist in enhanced disclosure principle. With regard to the listing rules, registration system applies in almost all the Second Boards which means that the regulator does not make judgement regarding the business prospect of the issuers and securities issue can be made so long as the issuers meet the minimum requirements and make full disclosure of the information. The requirements in the company's earning record, capital amount and number of public shareholders, etc. are lower than those of the Main Board, while the company has to make more disclosure and to obey stricter requ... |
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