China's Second Board Market Maker System

Instauration of second-board market is a challenge task for the securities estate in China. The impetus of NASDAQ market for American economy is focused attention by all countries. The pith of NASDAQ market is market-maker ruler, and then one of the key questions in microcosmic design of second-board market in China is whether introduce market-maker ruler into market. The thesis aims at solving this problem.Firstly, by comparing the similarities and differences of two deal systems, it elicits: it has higher liquidity and less deal costs in market-maker ruler markets when capital stock is smaller and there are less shareholders in markets, and it has higher liquidity and less deal costs in markets with auction system when capital stock is bigger and there are more shareholders in markets.Secondly, it analyses different deal systems of second-board markets in all countries and elicits: at present the mainstream of deal system in second-board markets is market-maker ruler. Now more and more countries have adopted market-maker system.Thirdly, it analyses a case: the growth enterprise market in Hong Kong, one of the rising second-board markets. Three main causes of bad behaviors in growth enterprise market in Hong Kong are singularity of structures in growth enterprise market; big proportion of net companies in growth enterprise market; bad achievements of net companies and small scale of growth enterprise market in Hong Kong.Finally, it demonstrates the feasibility of introducing market-maker ruler into China's second-board market. It wouldn't increase market efficiency if we introduce market-maker ruler into China's second-board market at once because China's economy is transferring, market-maker ruler is a trend of deal system in securities markets in the world, so it brings forward some advices of developing market-maker ruler in China.