The Study Of Financing Problems For Listed SMEs On China’s New Third Board

With China witnessing the recent economic downturn, the traditional industries are feeling difficult to inject new vitality into the national economy, which puts the country in a critical period of economic transformation and industrial structure upgrading. Meanwhile, a large number of innovation-oriented and technology-based middle and small-sized enterprises (SMEs) are thriving, who are making an important contribution to China’s economic construction and development. However, financing has become the bottleneck for these SMEs with the increase of their demand for capital in the enterprise development.Since the third plenary session of the 18th Central Committee of China Communist Party, through building the system of multi-level capital market from the comprehensive outlook, China has been blazing abundant financing channels for large, medium and small-sized enterprises to solve their financing problems. The multi-level capital market system has transformed from the "inverted pyramid" structure to the "pyramid" structure, which is accompanied by the process of China’s financial reform and economic restructuring. The New Third Board, as the main focus of constructing the multi-level capital market system, responds to the developmental problems of China’s SMEs. With its main purpose of serving China’s SMEs, the New Third Board strives to broaden the financing channels and solve the financing problems of the SMEs. In 2013, China’s New Third Board expanded to the national scale. In 2014 and 2015, the New Third Board achieved an explosive growth by welcoming a large number of bonus policies. However, the formally released 13th Five Year Plan did not mention the Strategic Emerging Industries Board, suggesting that the key of building the multi-level capital market at the moment is still to improve and deepen the New Third Board market.The current study argues that the theory of financial growth cycle and the concept of multi-level capital market can be used to analyze the construction of China’s New Third Board and SMEs financing problems, and the financing methods and financing efficiency are defined, this article believes that the financing efficiency is the use of financing, that is the best match of SMEs’input and output. Thus, the first part of the current thesis is to introduce the current situation of China’s New Third Board, its system construction and market functions. The second part uses the method of case study to analyze SMEs financing methods in the New Third Board. Based on DEA, the third part uses the first 43 listed SMEs in Jiangsu Province as examples, explaining the financing efficiency of the listed corporations and emphasizing the importance of the New Third Board’s financing functions on the growth of China’s SMEs. Finally, the thesis reaches its conclusions and puts forward strategic suggestions based on the conclusions.