Research On The Financing Effect Of The Listing Of “New Third Board” By Enterprises In Yunnan Province

Yunnan is located in remote areas of Western China,and its economic development is slow.What supports the economic development of Yunnan is mostly SMEs in the start-up period or growth period.As of 2015,the number of enterprises in Yunnan totaled 3797,including 3691 SMEs.Among them,the number of smallsized enterprises was the largest,which totaled 2828.97.12% enterprises in Yunnan belong to SMEs.However,due to the low profitability of enterprises as well as the lower capital market development level of Yunnan compared to the mean national level,SMEs do not have many choices of financing,and the cost is high.Generally,bank loan is mainly utilized.Under the circumstance,the “National Equities Exchange and Quotations” market was emerged in order to increase financing ways for SMEs.On the one hand,the establishment of the “National Equities Exchange and Quotations” market was initially for the purpose of helping SMEs to raise funds.Through nearly a decade's development,it has gradually become an indispensable channel for SMEs to raise fund.On the other hand,the “National Equities Exchange and Quotations” market requires low listing conditions,simple listing procedures,and low financing costs by SMEs,but a lot of preparatory work still has to be done in the early phase,which may consume many human resources,material resources and financial resources.Therefore,the financing effect of listing in the “National Equities Exchange and Quotations” by enterprises will be mainly explored in this paper,so as to measure whether an enterprise should be listed in the “National Equities Exchange and Quotations” for financing at high costs.The financing effect of the “National Equities Exchange and Quotations” market will be evaluated on the basis of two aspects.First,the financing ability of “National Equities Exchange and Quotations” itself will be investigated,that is,whether an enterprise can realize financing to meet its fund needs from the “National Equities Exchange and Quotations” market.Second,the development status of the enterprise itself after being listed in “National Equities Exchange and Quotations” will be evaluated.In other words,it is to check whether the profitability of the enterprise has been improved and the capital structure of the company has been optimized,thus verifying whether listing in “National Equities Exchange and Quotations” at high costs can help to facilitate the development of enterprises in the future.By integrating the above two aspects,if an enterprise can realize financing successfully from the “National Equities Exchange and Quotations” market and can maintain steady and sustainable development after being listed in the “National Equities Exchange and Quotations”,it will be considered that positive financing effect can be achieved by the enterprise by listing in the “National Equities Exchange and Quotations”.However,it either of the two aspects fails to meet the conditions,it will be reckoned that positive financing effect cannot be obtained by the enterprise by listing in the “National Equities Exchange and Quotations”,that is to say,the enterprise should not raise fund by listing in the “National Equities Exchange and Quotations”.First,the literature research method is applied to clarify theories about corporate financing,and domestic and overseas literatures about the corporate financing effect are taken for reference.Meanwhile,a summary is given about the domestic “National Equities Exchange and Quotations” market.Second,the basic concept,historic development process,characteristics,and status quo of the “National Equities Exchange and Quotations” market are elaborated along with the discussion about the applicability of the “National Equities Exchange and Quotations” market via corporate financing theories.In addition,the evaluation of the core financing effect of the paper is defined.The financing effect is mainly judged from financing situation and corporate development situation of enterprises at the time before and after being listed in the “National Equities Exchange and Quotations” market.Third,via the analysis of the status quo of the capital market development in Yunnan,the market scale of the “National Equities Exchange and Quotations” in the province,and the refinancing amount,the development status quo of the “National Equities Exchange and Quotations” market in Yunnan is illustrated.Fourth,case analysis is adopted to find out reasons for Wenhey Pharma to be listed in the “National Equities Exchange and Quotations”.Its financing situation and subsequent development situation are both researched as well,so as to further verify the financing effect of the “National Equities Exchange and Quotations” market.Finally,policies and suggestions about the financing ability in the “National Equities Exchange and Quotations” market are put forward,conclusions for the whole text are made,and outlook for the future development of the “National Equities Exchange and Quotations” market is proposed.