Development And Risk Of China’s New Third Board Market

Since the reform and opening up of China,China’s capital market has been in development forward,but the development of capital market structure is not perfect,it did not establish a truly multi-level capital market,many investment and financing needs are not being metln 2001,to solve the problems of enterprises to withdraw from the capital market and the "Two network enterprise" problem,the stock transfer agent system is established,which was the youngest "third board" market.However, China’s third board market develops slowly,only the Main Board and Growth Enterprise Market trading more active.In 2006,unlisted companies in Zhongguancun Science Park enter the stock transfer agent system to pilot,it Marked the formation of the "new three board" market.In december 2013,the new third board market expanded to the whole country,and trading volume increased rapidly,it made the new third board became more meaningful OTC market compared with the Main Board and Growth Enterprise Market.After the new third board market had expanded to the whole country,both in the number of listed companies, the stock issue size or scale enterprises in financing, stock trading frequency had achieved very good results.By the end of 2015,new third board market had reached a total of 5129 listed companies,and stock financing volume reached 121.617 billion yuan.what’s more,the market maker trading system had been launched,a series of rules and regulations had been issued to guide business,and the new regulatory regime in the market had been improving.However, the development of the new third board market was still faced with many problems,especially risk.Third new board of listed companies is not a profitable market, the scale of enterprises, and other types of quantitative indicators of surviving life limit, the third board market listed companies is difficult to guarantee the quality of the third board market; enterprise scale is small, the flow of capital to smaller, market manipulation, insider trading frequently; serious speculation market speculation atmosphere, and many other factors, coupled with the market no price limit as a result of the new third board market investment risk. Third new board market risk comes from the listed companies, investors, intermediaries from regulatory agencies, the board market overall risk. Market externality, information asymmetry, hitchhiking, market failure determines the new third board market is a relative of China main board market and the GEM market risk. At the same time, because the third new board market is established in a relatively short time, although in many system exploration made significant progress, but as a new market, new third board market must exist many imperfections, appropriate laws and regulations, the new three board market is still relatively lagging behind. Investors, especially individual investors on the third market still need time, intermediary agencies also need to continue to explore on their own roles, regulators still need to market test of its functions, the board market development there are still a lot of uncertainty, an important reason for uncertainty is the third board market risk of the formation of the development of the market.To avoid market risks investors need to strengthen the business and market research, need more supervision departments early warning, prevention and supervision at the source. Finally, from the aspects of implementing the guidelines of securities market, improve the regulatory capacity and efficiency of market supervision and countermeasures.After all, the new third board market development is still in its early stages, for the analysis of third new board market risk and supervision countermeasures has just begun. With the further development of the new third board market, the market risk and regulatory measures also need to be more in-depth study in the future.