The Analysis On The Issues Of Listed Companies Transferring Board In NEEQ

Accelerating the construction of multi-level capital market is an important part of China's recent economic reform.Currently our multi-level capital market system in general has yet to be perfect,but with the implementation of the formal establishment of National Equities Exchange and Quotations company(NEEQ)and a series of policies and systems,China's multi-level capital market has made a brilliant breakthrough.By the end of October 2016,the number of companies listed on NEEQ has reached up to 9324,far beyond the total number of SSE and SZSE.But the lack of liquidity has led to the result that corporate valuation is difficult to upgrade.Meanwhile,it hurts development of NEEQ.And the high valuation is exactly the desire of high-quality companies.A-share market with more active transactions and higher market valuation attracts these companies,and the signal of IPO registration reform released at the end of 2015 by SFC also inspired these companies listed on NEEQ to transfer to A-share market.By the end of August 2016,11 companies have been delisted from NEEQ and transferred to the GEM or SME board.This paper is about the phenomenon of transferring to new board.Around the three questions: why listed companies in NEEQ choose the strategy of transferring board,what is the internal and external factor that lead to the success of tranferred companies and what is the change after the transfer,the start of the analysis is based on these three issues.Considering the small number of successfully transferred companies,so we use the way of case study:First of all,This article combs the situation of transferring board and clarifies the operating characteristics of NEEQ and GEM.It reveals the current problems of lack of liquidity in NEEQ,which is the motive of transferring board.After the introduction of 10 transferred companies cases,it puts forward the possible problems during transferring board.Secondly,the case analysis selects 10 successfully tranferred companies to analyze internal and external factors.PEST analysis is used in external environment,and internal factor analysis is mainly from three aspects: the motive,conditions and cost of transfer ring board.And we compare the liquidity of these 10 companies' stock before and after transferring.In addition,we select the companies listed in NEEQ at the same period but has not yet transferred successfully for nearly three years of financial performance to make comparison and to explore the enhancement of their own capacity after the success of transferring board.Finally,based on the above research,we make case conclusions and transferring relevant reference to the listed small and medium-sized companies in NEEQ and put forward targeted,operational countermeasures and suggestions to NEEQ at the same time: Based on their own financing needs,companies should regulate their own governance,make a good preparation for transferring board,grasp the initiative in the financing market,and timely select the transferring strategy;NEEQ should make their own position clear,improve market liquidity and trading volume and accelerate the landing speed of the bonus of hierarchical policy.From the stage of service for small and medium companies,reduce the time and cost of transferring board,and introduction of the specific system measures should be released in proper time.