A Study On The Financing Of NEEQ Listed Companies In Yunnan

Yunnan is located in the remote western part of China,where has little attraction to the large-scale enterprises.Most of local companies are small and medium-sized enterprises that rely on local resources to live and develop.That is the restriction of the development of economy in Yunnan.Now,the proportion of SMEs is up to 90%of all enterprises,but the total profit generated by them only accounts for 54.56%of the profits generated by enterprises in Yunnan Province.To make a rapid economic growth in Yunnan Province,the primary task is to speed up the growth of SMEs.The most prominent problem for SMEs is financing.As we all know,in the process of operation,the cash flow of the enterprise is like the blood of mankind.China’s SMEs are facing a shortage of funds.As a result,the development of enterprises is in danger.In order to broaden the direct financing channels for SMEs,and make them obtain more low-cost funds,the National Equities Exchange and Quotations(in short for the NEEQ and also called "New Third Board" in Chinese)was formally started in September 2012.It has gradually expanded the scope of the pilot to all companies that meet the conditions of the NEEQ.The establishment of the NEEQ has created a certain market environment for the financing of SMEs in China and solved some financing problems.In June 2018,there were 34 listed companies in Yunnan,while 96 companies listed on the NEEQ.Therefore,regardless of the theory of the listing conditions or the practice,the NEEQ has undoubtedly become one of the most important method of financing for small and medium-sized enterprises in Yunnan Province.Based on this background,this thesis uses the literature research method to sort out the enterprise financing theory,and summarizes the historical process and current situation of the NEEQ.Secondly,it introduces the general situation of capital market in Yunnan Province,and discusses the transfer situation and stratification of listed companies in Yunnan Province,and analyzes the current situation of listed the NEEQ enterprises in Yunnan Province.Fourthly,the case analysis method will be used to analyze the case of WH Company,which is listed on the NEEQ.The financing situation at the beginning and after the listing will be analyze,and the company’s financing strategy will be explained based on data analysis such as financial indicators.Finally,based on the results of the case research,this thesis will list some policies and suggestions in the view of the government,regulatory authorities and enterprises to improve the financing ability of enterprises,and propose a prospect for the future development of the NEEQ.