Research On The Switching Board Mechanism Of NEEQ

Chairman of China Securities Regulatory Commission,Liu Shiyu proposed to accelerate the speed of the examination and approval of companies switching from NEEQ to growth enterprise market or main board market.NEEQ has developed rapidly in recent years.According to the statistics from the NEEQ website,the number of the companies listed in NEEQ has increased from 1,572 to 5,129 by the end of 2015,and the rate of increase has been incredibly 226%.What's more,the number has been above ten thousand,or 11,630 precisely by December 29th,2017.However,we can never ignore the fact that there are still some problems in NEEQ,such as the liquidity and the information disclosure problem,despite of the promising future of the market.Besides,the listed companies of high quality in NEEQ are in variable need of financing in accordance with their stage of life.They have also lived up to the standard of the higher markets' admittance.In 2017,18 companies succeeded to switch from NEEQ to other segments of the capital market,which was a breakthrough compared with that of 2015.Among them,13 companies found their position in the growth enterprise market.Even though the number of the switching board companies has increased,the mechanism of switching board is not that perfect.There is no denying that the foundation of multi-level capital market has made great progress,but each segment of the capital market is relatively independent and is in short of effective communication mechanism.The result is that the companies who are to switch board have no choice but to pay high fees and wait for a long time.This phenomenon has a negative effect on the financing efficiency of companies.Therefore,studying the listed companies switching from NEEQ to growth enterprise market is not only based on the theory of enterprise life cycle,but also makes contribution to lowering the cost of financing and activating our multi-level capital market.This dissertation is mainly composed of the three sectors below:The first sector studies the literature review related to switching board,which includes the necessity and feasibility of switching board.It also mainly discusses the theoretical foundation of switching board and makes further explanation.This sector has also made a brief introduction of the types of switching board and focuses on the one that companies moving to the higher level.What's more,it also includes the status quo of NEEQ.The most important thing is that this sector servers the role of introducing the core topic of the dissertation.The second sector is the focus.First,it shows the background of the case.The sectors before only introduce the problems of the switching board in a macro and theoretical way,while this part we take a look at the problems in detail through the case of Guangdong Topstar Technology.The case has been divided into two parts,that is the motivation and the feasibility of switching board,which includes the standard acquired and the huge cost and the time spent while putting switching board into practice.In this way,we will have a clear view of the problems and highlight the dilemma that the listed companies are qualified for the growth enterprise market,but the process is too suffering.In the last sector,we try to learn lessons from this typical case and enlighten the companies that have the intention to switch board,picture the structure of NEEQ and give pieces of advise to the future of our switching board mechanism or even the whole capital market.From the perspective of individual companies,they should improve themselves constantly and weigh the pros and cons of switching board carefully.What's more,they are required to get the preparation thoroughly.From the perspective of NEEQ,we should make clear of the position of NEEQ and perfect the related mechanism.As for the whole capital market,we should update the mechanism of switching board and formulate a green channel.The last but not the least,we are in our position to improve the relevant mechanism and pay more attention to the supervision and control.The innovations of this dissertation are as follows.It keeps up with the heated topic in recent years,that is the mechanism of listed companies from NEEQ.What's more,the case chosen-Guangdong Topstar Technology is both typical and timely.Both NEEQ and the mechanism of the listed companies switching from NEEQ are updated continuously.Therefore,this dissertation has paid special attention to the latest news,legislations and statistics.As a result,it has made a more complete and effective research of the topic...