The Normalization And Development Of Regional Equity Trading Center

As an important role of China’s multi-layer capital market. Regional stock exchanges were established for the share transfer and share trusteeship of non-listed companies. Regional stock exchanges can also provide new financing channel for small business. In addition, regional stock exchanges can help companies to issue bonds and other financing products. Thus, regional stock exchange is the basis of a multi-layer capital market and need to bear the responsibility of non-listed companies’ development and finance. From this point of view, the research about regional stock exchanges is important as well as necessary. In this thesis, the future development and perfection of regional stock exchange is discussed and analyzed with a case study of Zhejiang Regional Stock Exchange.Firstly, the experiences about development of overseas regional stock exchanges is analyzed and summarized. Starting with the introduction of the position of Chinese regional stock exchanges, the development and history of overseas over-the-counter markets in foreign countries were introduced including markets in developed countries and developing countries. The rules of overseas over-the-counter markets were compared. The author believes that China’s regional stock exchanges should also be multi-layered and its trading rules should be diversified and should be inspected by local authorities. After that, China’s regional stock exchanges’ development is analyzed. Three regional stock exchanges, the Qilu Regional Stock Exchange, Qianhai Stock Exchange and Zhejiang Regional Stock Exchange were selected and the cooperation analysis was conducted include the difference of trading rules, the rewords of listed companies by local government and supervisory regulations. Then, a case study about Zhejiang Regional Stock Exchange was conducted include the backgrounds of its establishment, the main products and services, and its regulation system.Based on above analysis, the suggestions of China’s regional stock exchanges’ development were concluded. During the developments, the local authorities, the local enterprises and local investors are three essential roles so the suggestions were also came up from the three aspects. For the local authorities, the guidance and promotion of innovation is important as well as the perfection of supervisory regulations. For listed companies, the listing criteria and services for these companies are important. As for local investors, the Investors appropriate system and market-maker system are two fields that worth noticing. In addition, the author also gave some suggestions about making a developing platform for innovative companies with great potentials.