A Research On The Construction Of China’s Multi-level OTC Market

OTC market is one of the basic part of the Capital Market, so the inner layer of theOTC market becomes an important issue of the multi-layer capital. All of the developedcountries and areas are play an importance on the OTC market to make it improved anddeveloped. In China, even though the OTC market appears earlier than other kind of thecapital market, its development is far behind of the Main Market and Venture Market,which has seriously affected the OTC market functions into full play. As we all know, theChinese economy is growing proportion of SMEs, but its development is still constrainedby funding issues. The improvement and development of the OTC market will play ansignificant role in solving the financing issues, which has troubled SMEs always.This context uses multi-level capital market in general theoretical to analyze thenecessity of building multi-level OTC market and a combination of methods oftheoretical research and empirical research, comparative law, induction and empiricalmethod to research the construction of multi-level issues related the OTC market. Byanalyzing the draw of the world’s more developed several successful experience in theOTC market, this context proposed construction of multi-level basic principles of theOTC market, the development of positioning and development patterns against thedevelopment and problems of China’s OTC market.Through analysis, the context concludes that the OTC market must be multi-layered.Multi-level OTC market trading patterns should be selected on a competitive hybridmarket-maker system. The form of organization should be selected Inc. The regulatorysystem should be based on self-regulation by Securities Industry Association andsupplemented guidance by Regulatory Commission. These studies have importantrealistic significance on China’s OTC market development and coordination and theentire capital market system.