The Study On The Liquidity Of Third Board Market In China

Securities market of our country has developed rapidly. But the phenomenon such as poor governance of listed companies, market speculation, scrambling for public resources is common. What is more, many enterprises, especially mall and medium-sized ones which have the innovation ability are still unable to raise funds. This situation seriously restricts the development of these enterprises. Therefore, in order to solve the financing needs of multi-level companies, rich investment channels and promote the healthy development of capital market, our country has gradually developed and improved the third board market.In this paper, I started from the definition of liquidity and classified the liquidity index based on the price index, quantitative index combined with the quantity and price index. Moreover, I analyzed the influence of microstructure on liquidity. This article also described the definition of Three Board Market and determine the scope of third board market. Then this article analyzed the difference microstructure among third board market, main board and second market.In empirical study, I choose modified Martin index to value the liquidity which is named LI. Then I compared LI of the third board market with main board and second market. In addition, I compared LI of the third board market before market marking with that after market making. I concluded that the liquidity of third board market has an obvious improvement after market making but is still lower than that of the main board and second board. The liquidity risk of third board market is large. Third board market needs further development.Finally, combined with the empirical conclusion, I analyzed the causes of poor liquidity in third board market and put forward some Suggestions to improve liquidity.