Conditions Analysis On Small And Medium-sized Enterprise Going Into National Equities Exchange And Quotations(NEEQ)

Nowadays, capital market structure in China has relatively simple structure, higher IPO threshold, strict examination and approval procedure, longer waiting time, leads to that only enterprises with better qualifications can be listed in the main maket as well as the smallcap market. As for small and medium innovation enterprises, it is difficult for them to obtain direct financing from the capital market. Therefore, in order to make up for the shortages mentioned above, China has started implementing market expansion of NEEQ in key aspects from 2012, NEEQ has become the important channel for small and medium enterprises to obtain direct financing and capital securitization. This paper delivers deep discussion on how enterprises can be listed in NEEQ, which provides new options for enterprises going into capital market.This paper samples 8 cases to obtain concrete analysis, drawing lessons from capital securitization and relevant theory of security market both in China and abroad, it utilizes qualitative investigation and case analysis method to analyze listed conditions of NEEQ, then it reaches the following conclusions:The first key conclusion is planning, e.g., preparing for entrance conditions before being listed is crucial, Firstly, company should be founded legally, and establish compliance and legal identity. Secondly, the contributions and methods of contributions by shareholders should be binding compliance and legality. The duration in company should be at least 2 years. Finally, enterprises should clearly list main business, product and service etc.The second key conclusion is that reformatting shareholding system and confirming stock issues is essential. The right to stock of shareholder should be compliant and legal, it should have no disputes with unsettled stock right. The state-owned right to stock before being listed and right to stock of foreign investment enterprises should obtain corresponding confirmation letters according to regulations of relevant department. The operation range of company, horizontal competition and connected exchange should be in the reasonable range.Combining background of deepened economic reform, the development space in the future for Chinese small and medium enterprises is very large. This paper potentially puts theory into practice by detailed analysis on listed conditions of NEEQ, it hopes to provide relevant information and suggestions for enterprises to be listed on NEEQ, and put forward some unique suggestions for financing and capital operation of small and medium enterprise.