Research On The Mode Of Risk Prevention And Control Of New Three Boards In China

The development of capital markets has always been an important manifestation and effective way for developing a country’s economic. To enumerate the rising history of Holland, Britain and the USA, we can see that their capital markets did greatly promoting effects for economic and politics. As for present China, we are in a pivotal stage of reforming and has been ready for financial industry reform. The problems for the development of economy have shown up: enterprises facing difficulties of direct financing, the imbalance of capital market structure and industrial upgrading being hard to get support. In the face of such a predicament, China relevant departments made some moves in policy making for improving multi-level capital markets, and promote the linkage effect between capital markets. The NEEQ market eventually came out is in such a background.As the main force of China’s OTC markets, NEEQ has been through frustrations like hard exploring and light trading. Now that NEEQ has been enlarging. The number of listed enterprises is growing rapidly and the trades are booming. But the NEEQ market still has many risk factors, which restrict the healthy development of the market. In this paper, I analysis the risks including system risk, listed enterprise’s own risk, system construction risk, investors risk and other risks. By learning experiences of other OTC markets, I offer proposals in avoiding and controlling risks for all NEEQ participants. I hope to enhance the understanding the risks of NEEQ market and improve market participants’ risk consciousness. We need to build a Risk Controlling Mode for providing strong financial guarantee for the development of emerging industries and small enterprises, which can be an escort for China capital market construction.