Research On The Promotion Of The New OTC Market On The Development Of PE In China

Today,under the strong encouragement and support of our government,our country's folk economy develops actively,many small and medium-sized enterprises show vigorous vitality.Compared with the large and medium-sized enterprises and state-owned enterprises,small and medium-sized enterprises due to their own financial strength and other issues,it is difficult from the bank,IPO and other traditional channels to obtain adequate financial support.However,we can see that,with the continuous improvement of China's multi-level capital market,especially since 2013 the New OTC Market's road of national expansion and the rapid development of China's private equity funds,for China's small and medium enterprises,especially the development of small and medium-sized Science and technology innovation enterprises provides another more Effective sources offunding.This paper summarizes the existing research status of related fields at home and abroad through the study of the existing data,and briefly introduces the development process and current situation of the New OTC Market and private equity fund in China.Through the combination of them in China,we can find that the development of the New OTC Market has a great boost effect on China's private equity funds.Through the Jiuding case,we can find that,with the help of the national over-the-counter market,China's private equity institutions can be listed through the New OTC Market,to enhance its liquidity,and through private placement financing,will greatly supplement their interests Capital strength,but also for the increase of a certain brand.Meanwhile,through listed,they can standardize their existing capital and management structure,help their more stable long-term development.For private equity funds,the project to find and post-investment exit is critical.The New OTC Market is now over 10,000 listed companies,greatly enriched the private equity fund project sources,reducing the cost of its project search.With the further development of the New OTC Market,it will have a great potential to become a major private equity fund pool in future.On the other hand,the successful exit of private equity fund investment is the last part of the whole investment.In the past,the withdrawal of private equity mainly through the traditional channels such as IPO,the existence and rapid development of the New OTC Market,effectively solved the traditional exit channel of private equity industry is too short of the status quo.Data show that the New OTC Market has replaced the IPO to become the main channel for the withdrawal of private equity funds in China.Now,although the New OTC Market listed companies have exceeded 10,000 marks,but we can see that there are some problems in valuation,liquidity of the market,etc.At the end of the article,the author through research and analysis,put forward some suggestions that how to make further use of the New OTC Market,in order to speed up the development of private equity funds in China,hoping to China's New OTC Market construction and private equity fund development have a good push effect.Through the research of this paper,we can find that the New OTC Market has a great influence on the capital,project source and exit of China's private equity fund.In the future,with the further improvement and development of the New OTC Market,and the deeper integration between the two,will have a more positive and far-reaching impact on both development,and will make our multi-level capital market more perfect,to meet the diverse needs of different enterprises financing.