The Risks And Coping Strategies Of Chinese NEEQ Market

As the core motivation of modern economy development, financial industry especially capital market is playing an important role on economic development around the world. Financial enterprises’ innovation is necessary because the imbalance of economy structure and capital market that is caused by immature economy environment has increased the difficulties of direct financing. The improvement of construction of multi-level capital market system and capital circulation channels is necessary in current financial market.As an important part of Chinese street market, the amount of NEEQ market companies has been increased rapidly because of the expanding policy in 2013. The NEEQ market was born by the establishment of small and medium-size enterprise stock transfer system. What is more, the NEEQ market has been expanded from local market to national market. The Chinese NEEQ market aims to service small medium and creative entrepreneurial enterprises is known as “NASDAQ in China”.There are risks in NEEQ emerging market because the NEEEQ market focus on serving small-medium enterprise which lack of well established institution and effective management. One of the risks is that the market liquidity has not been improved by NEEQ market expanding. The development barrier of NEEQ market is caused by the lack of market maker and ethical issues. Although NEEQ market has good development prospects, it is necessary to establish effective and efficient trading and regulatory system in order to achieve risk prevention of primary and secondary market.This project aims at discussing source and solution of NEEQ market risks through the developing history and current issues. The paper insists that the main risk source of the NEEQ market is the enterprises and capital market. On the basis of learning the experience of developed NEEQ market, this paper also has explored the strategies and solution of decreasing the risks of Chinese NEEQ market. Although there are risks, as an important part of multi-layer capital market Chinese NEEQ market with good developing forward has contributed on Chinese economy. The goal of this project is to contribute Chinese NEEQ market development by analyzing risks and providing solution.