Three Board Legal System Of Multi-level Capital Market Research

Third board market, an indispensable component o the multi-layer system of capital market, Plays a particular and irreplaceable role in not only offering the service to support those companies which temporarily fail to meet the requirements of being listed in the main board market and second board market, but also providing the venue for the redistribution of shares of those delisted companies. Third board market in China, formally referred to as "Commissioned Shares Transfer System", was Established in 2001. It has already gradually evolved into featuring three functions. Firstly, the system serves as a stock exchange center for the directional raising corporations originating in the abolished STAQ and NET system. Secondly, the System accepts the companies ousted from the main board market. Thirdly, the system offers quotation and transfer services for the non-Publish hi-tech companies in ZHONG GUAN CUN Industrial Park. Nevertheless, in comparison with foreign mature counterpart, the legal system of third board market in China, still accompanied with comparatively many defects, remains far from completely formed. To be specific, the shortage of the supervision system obstructs the sustained development o the market, the absence of the issuing system restricts the financing function of the market and the deviation of the transaction system leads to the infrequent exchange of the market.The dissertation is divided into four sections for the discussion. To begin with, it defines the legal concept and category of third board market and clarifies the value of improving the legal system of third board market. Next, by the method of comparative analysis, the author summarizes the successful experience in operation of the third board market in U.S.,UK and Taiwan and puts forward its possible model significance to China, relevant legal system. Thirdly, through the review of the history and status quo of the third board market in China, the dissertation points out the principal defects within the system of supervision, issue and transaction. Finally, suggestion on the relevant systems is set forth by the author, with a view to settle the herein before mentioned problems.Without guidance of the theory, practice could never move forward. As the third board market remains a brand new concept in China, there will be a long way before it becomes mature. By analyzing the current legal system of Third Board Market Revealing the main problems, and taking into account the successful experience in some countries and regions, he author brings forward some suggestion which is Hoped to be beneficial for the future development of third board market in China.