On The Transfer System Of China's Multi-level Stock Market

A developed stock market has significant meaning to the national economy developing. It is always a great concern to people in all circles about the health, sustained and stable developing of stock market. After the Third Plenary Session of the 18 th Central Committee of the Communist Party of China, adjustments of a series of policies contribute greatly to the transformation and innovation of stock market. To develop the multilevel stock market and the hierarchy which fits the developing of innovating and emerging enterprises. To form a rational and cycled system which companies advancing and retreating orderly and smooth in the multilevel stock market. The adjustments of policies offer a direct reason for developing the substantial multilevel stock market and setting up the board-transferring system based on it. These are the paper's main contents that how to build the board-transferring system so that promote to strengthening the contacts of every level in stock market, functioning stably and fulfilling the market mechanisms.The arrangement of multilevel stock market is the base of its materially structuring, and to build board-transferring system need to accord to the arrangement and the dividing of levels. The multilevel stock market in our nation has a diversified arrangement: there exist three nationwide stock markets and one group of region-based stock markets. Generally accepted, our nation's stock market is divided into four levels, and this division is the base of building the board-transferring system.Board-transferring system means companies which listing on special level of stock market could transfer through levels on companies' own initiative or passively when meet special requirements. Board-transferring system contains several kinds like upgrade transferring and downgrade transferring, or initiative transferring and passively transferring. There exist difference between upgrade transferring and listing, as well as downgrade transferring and delisting, and it's necessary to reflect its unique features and values when construct board-transferring system. Considering factors like security market self-governance and flexibility, the system of legal norms of board-transferring should conclude not only laws, regulations and departmental rules, but also rules of markets.The foundation of norms of board-transferring system lack legal norms that make the transferring behaviors not do as "according to the law" and the system has not yet been established. Upgrade transfer channels are sluggish which be limited by stock market failed to establish a multilevel and in turn affect the function of multilevel stock market play. Downgrade transferring poor practices lead to the market mechanism greatly reduced, also not rich of downgrade transferring content limits the companies' autonomy. The foundation of market of the board-transferring system exist several flaws of missing stock market levels, the level of functional overlap and irrational of multilevel structure. It should be strive to build a substantial multilevel stock market. To build board-transferring system, we should uphold facilitating corporate financing, helping the enterprises grow, both market efficiency and order and other values as the foundation of the concept.It must be lay the legislative basis, market foundation and conceptual basis to build board-transferring system, and with reference to foreign mature experience, taking into account China's specific practice. There are six aspects to give impetus to establish board-transferring system as OTC upgrade transferring exchange market, upgrade transferring in OTC and exchange market, strengthening the punish functions of forced downgrade transferring, optimizing index setting to promote the efficient operation of the forced downgrade transferring, safeguarding the exchanges' independence to implement forced downgrade transferring and enrich connotation of downgrade transferring.