Elementary Analysis Of China Otc Market

In recent decades, multi-level capital market construction is alwaysone of most important topics and tasks of China's financial system.Compared with relatively developed motherboard, small andmedium-sized board and GEM board, the over-the-counter market lagsbehind, and has become the "short board" during our country multi-levelcapital market construction. However, in the mature capital markets ofdeveloped countries, the OTC market has always been an important partof the multi-level capital market, and served as the foundation,incubation and exist channel for the higher level markets.After over30years of development, China's OTC market is consist ofAgency Share Transfer System, local property right trading market, andregional equity trading market such as Tianjin equity exchange. However,because of the absence of regulation, the local OTC market operatefragmentally, and is lack of unified national planning, which leads toinefficiency. The paper begins with the analysis of the necessity to construct theOTC market, find out its shortage through a review of the history of themarket development and the analysis of the present operation of thetypical OTC market. Then after a thorough analysis and research on theAmerican OTC mode, we learned something from its experience andstrength. Finally, by unifying the current operation of China's OTCmarket, I proposed some conceptions and suggestions on its developmentpattern.