China’s OTC Market And Its Institutional Design

Accelerating the construction and development of multi-level capital market is atrend. It includes two blocks, namely exchange traded markets and OTC markets, and theOTC market is an important part of the multi-level capital market system. With the "newthree board" expansion to the country, the overall framework of the OTC market hasbasically completed structures. In this context, in order to further promote the health,prosperity and development of the OTC market, on the current development of the OTCmarket to be analyzed, based on the experience of the development of the OTC market inthe mature countries and regions draw on, and then propose appropriate institutionaldesign of the OTC market, which is very necessary and significant.The first part of this article will be mainly about the background, purpose andmeaning, review research, research methods, innovation of the paper, and technologyroadmap; the second part of this article, mainly involves the definition of OTC market andthe necessity of developing OTC market.The third part of this article analyzes the development status and problems of China’sOTC market, and it is mainly on the four components of the OTC market which wereclarified; Part IV of this article has the main analysis of the international mature OTCExperience and Implications for China’s OTC market development, by means of taking theUnited States, Britain, Taiwan these three more mature models as examples.In this fifth part, the system design of OTC markets will be presented, including thetop-level system design, operating system design, regulatory system design, design ofauxiliary support systems; Finally, Section VI of this article, drawn by the above analysis,proposes the construction of coordinated development model of China’s OTC market afterdeep thinking.