Research On The Introduction Of Market Maker System Of China’s Growth Enterprise Market

Growth Enterprise Market is an important link in the system of Multi-level capital market,which faces a series of difficulties in the development process, however, due to the GrowthEnterprise Market in China started late, and its listed companies more than for smaller SMEs,resulting in the Growth Enterprise Market, such as liquidity problems, stability issues. TheSolutions to the problems is the introduction of foreign ripe for the market maker system,which relates to the vital interests of the investors of Growth Enterprise Market, but alsobears on the future fate of the Growth Enterprise Market. Based on the analysis of theevolution of history, the necessity, feasibility and System improvement should be done beforethe introduction of the market maker system in china’s Growth Enterprise Market. The Thesiscarries out whether Market Maker System should be introduced in Chinese GrowthEnterprise Market.In addition to the introduction, conclusion, the thesis consists four chapters. In chapter Ⅰ,the concept, history, the advantages and defects of the market maker system are analyzed. Inchapter Ⅱ, the necessity and feasibility of the market maker system were analyzed. Inchapter Ⅲ, current market maker system are introduced.In chapter Ⅳ, several proposals areput forward on how to build legal systems of the Market Maker Systems, Including legalobstacles should be cleared before the introduction of market-maker system, the constructionof market makers operating rules, as well as the construction of the supporting system isassociated with the introduction of market makers trading patterns.The Competitive Bidding System has the advantage that the transaction cost relatively cheap,transaction process be fairer and regulatory costs is lower; Weakness is that if meet theeconomic downturn in the stock market or The stock market is low awareness of small andmedium-sized enterprise primarily, a single Competitive Bidding System is likely to face theproblem of poor liquidity.The Market Maker System’s advantage lies in the securities marketliquidity can improve and stability; But its defects is that in order to obtain more economicinterest，The Market Maker may ignore the trading rules or expand price quotation to damage the interest of investors. I think that with view to the development trend of security tradingmechanism abroad, the combination of The Market Maker System with The CompetitiveBidding System is now an inevitable trend.