NEEQ Market Trading Mechanism And Its Pricing Efficiency

In order to speed up the construction of China's multi-level capital market,continuously improve the financial environment of small and medium-sized enterprises,vigorously promote the development of innovative enterprises,and actively promote the healthy,stable,and sustainable development of the over-the-counter market in China,the State Council approved the establishment of the National Equities Exchange and Quotations in 2012(Commonly known as "new three board").With the continuous improvement of the multi-level capital market system and the diversified market demands continue to be met,the NEEQ market serve as the national OTC securities trading market between the GEM market and the regional equity exchange market levels,with lower listed companies.Many factors such as entry barriers,relaxed regulatory environment and flexible trading methods have attracted a large number of companies and investment institutions.On August 25,2014,the NEEQ market boards introduced the market maker system;on June 27,2016,the NEEQ market boards implemented the market stratification system.At the end of 2016,the scale of the new three-board listed company exceeded 10,000,and the NEEQ market has become an important part of China's multi-level capital market construction and improvement.At the same time,the market has long-term problems such as lack of liquidity,difficulty in financing,and low valuation.All parties are actively exploring ways to solve problems.This paper measures the pricing efficiency of the NEEQ market,explores the factors that affect the pricing efficiency of the NEEQ market,and from the perspective of pricing efficiency,it has two important trading mechanisms for the NEEQ market: market maker system and market layering system.A policy validity check was conducted.Pricing is the core of the capital market.Pricing efficiency is an important indicator reflecting the efficiency and quality of the capital market.The progress and improvement of the trading mechanism is the key to improving pricing efficiency.This article uses the daily transaction data of the listed companies in the NEEQ market from January 1,2015 to January 31,2018 to characterize the change path of the pricing efficiency of the NEEQ market,build an unbalanced panel data model and conduct research on the NEEQ market.The pricing efficiency is significantly lower than that of the Growth Enterprise market.The greater the market value of stocks,the smaller the book value to market ratio,the greater the turnover rate,the smaller the bid-ask spread,and the market's decline,can significantly improve the pricing efficiency of the NEEQ listed companies.It was further found that the pricing efficiency of the listed companies after making market-making transactions was higher than that before the marketmaking transactions were not conducted,and the more the number of market-making merchants,the higher the pricing efficiency.In addition,after the implementation of the market stratification system in 2016,the listed companies were selected in the innovation layer,and their pricing efficiency was reduced in the short term but increased in the long term;and after the implementation of the market stratification system in 2017,new pricing was selected for the innovative company.Efficiency has not improved.Finally,it puts forward suggestions for the development of the NEEQ market.