Research On The Management Policies Of Market Liquidity Of NEEQ

2016 is the first year in the 13 th Five-Year Plan of China, in order to be better adapted to the New Normal, and to improve the quality and efficiency of Chinese economic development, establishing a sound multi-layer capital market system is necessary to achieve the national strategy of China. The NEEQ market has grown rapidly since its overall expansion, and become increasingly important in the multi-layer capital market system of China. However, current market system of NEEQ could not match its speedy development, and thus causes serious liquidity problems.With this background, this paper starts from the market liquidity of NEEQ,picking the Amivest liquidity ratio to measure and compare the liquidity level of NASDAQ、NEEQ、Taiwan and Hong Kong stock markets. According to the empirical results, the liquidity level of NEEQ is far below the other stock markets, and most of the liquidity is supported by stocks with market markers. Moreover, this paper uses efficient velocity and turnover rate as measurements, verifying that the liquidity of NEEQ market is not only lower than its overseas peers, but also has other problems.To solve these liquidity problems, this paper raises prospective and feasible suggestions from dimensions of layering mechanism, board-transferring mechanism,transaction mechanism and risk control, with experiences of overseas capital markets analyzed and current political instructions combined.