Research On Market Liquidity Of NEEQ

NEEQ is growing rapidly after expanded in 2014,it can be said that NEEQ achieved a leap-style development,the total market value accumulating from tens of billions to thousands of billions,the amount of financing increased from billions to hundreds of billions.NEEQ system continues to improve,highlighted position in the multi-level capital market from the introduction of the market maker system,the implementation of the hierarchical program,the introduction of private equity market institutions.The so-called multi-level capital market,refers to our top-down capital market construction,relative to the western capital market formed from the bottom spontaneously,it has distinctive Chinese characteristics.China's multi-level capital market level is based on the maturity of the serviced companies,divided into the motherboard market,the second board market,three board market,four board market,etc.the first level that the motherboard market,is shanghai and Shenzhen stock exchange market in china,listed companies in motherboard need to pass through rigorous qualification review,they are mature business relatively.The second level that the second board market,refers to the Shenzhen growth enterprise board started in 2009,it has different listing qualification,trading system,servicing companies from the motherboard market,and listed companies in growth enterprise market are smaller and mostly scientific and technological relatively.The third level that the NEEQ,refers to the national equities exchange and quotations.NEEQ cannot be public offering of shares,so its companies cannot be called listed enterprise.NEEQ has a lower standard compared to the first two levels of market,it has greater appeal for scientific enterprises that were failed to growth enterprise market.The fourth level is the four board market,referring to the regional equity market.With the slowdown in china's economic growth,current economic policy to ease the pressure is promoting small and medium enterprise,finding new economic growth point.Technology and management innovation often occurs in the flexible medium and small enterprises,as the main part of economy,medium and small enterprises are engine for china's sustained growth.First of all,solving financing problems is the key to develop for medium and small companies,poor resistance to risk makes indirect financing cannot meet the needs of enterprise development,direct financing in capital market is more important for them.NEEQ is attracting more attention from capital market as medium and small enterprises financing platform.In 2016,NEEQ still maintained a high-speed growth trend,but compared to the previous two years of hot scene,a growing young market gradually exposed its immature aspects.NEEQ has suspended the listing of class financial enterprises,provided a platform for transfer of intention,announced relevant rules of termination to regulate information disclosure and transaction.in contrast to the rapid development of the market.the slump in liquidity has become a factor restricting the healthy development of neeq.as the largest capital market in the numbers of companies,NEEQ has not matched frequency of transactions in its own situation.Liquidity slump makes numbers of investor growing slowly,high-quality investors are reluctant to participate in the market,the numbers of terminated enterprises increased significantly.NEEQ's attractiveness to medium and small enterprises is reducing,as important part of multi-level market,improving liquidity status has become a priority.Based on the liquidity of NEEQ,this paper analyzes the current situation of NEEQ and compares it with other capital markets to find main reason of liquidity problem.Based on the development of NEEQ,learned from successful experience,this paper presents practical policy recommendations to improve the current situation of liquidity of NEEQ.