A Study On The Financing Dilemma Of Listed Companies On NEEQ

The difficulty of financing for small and medium-sized enterprises(SMEs)has always been one of the issues to be solved in China's market economy.With the continuous development of China's capital market and the increasing financing demands of SMEs,since the expansion of NEEQ in 2013,the number of listed companies has grown dramatically,from 200 at the end of 2012 to 11,630 at the end of 2017.Compared with ordinary SMEs,the NEEQ listed companies can obtain financing through the issuance of private placements to qualified investors,non-public issuance of preferred stocks and issuance of bonds,which have certain advantages.However,studies find that there are still many problems in the financing process of the NEEQ CompaniesAccording to the stratification system of the New Third Board market,the New Third Board companies can be divided into innovation layer enterprises and basic layer enterprises.Although the basic layer enterprises account for the majority,the overall level of the innovation layer enterprises is higher,with the more active trading mechanism,and more rigorous information disclosure system,represents the development trend of the NEEQ companies.Based on this,firstly,this paper takes the NEEQ companies as a whole,to analyze its current situation,to identify the common problems of the innovation layer and the basic layer enterprises,to investigate the reasons,and to put forward suggestions.Secondly,the paper selects Blue Sky Environmental Protection&Technology Co.,Ltd as a case study company,which is an innovation layer company in the NEEQ market.It analyzes the financing situation of the company since it was listed,studies the existing problems and personalized reasons,which confirmed the foregoing discussion to a certain extent,and proposes the some complementary suggestions.Finally,through the research on financing problems of commonality and personality,the conclusions of this paper are drawn.In order to solve the problems in the financing of the NEEQ,from the perspective of enterprises,the NEEQ companies should actively improve their own business strength and management level,strengthen financial budget and supervision,improve the financing structure,and do a good job of risk prevention.From the perspective of the market system,the government should strengthen the supervision of the NEEQ companies and constantly improve the market systems,such as the market system of the NEEQ enterprises transferring to other boards.Under this premise,relevant department could consider to deferentially lower the threshold for the entry of investors in the NEEQ market,enhancing the liquidity of the NEEQ market.On one hand,this paper can provide a certain reference for improving the system of the NEEQ market and raising the financing efficiency of the NEEQ enterprises.On the other hand,basing on the latest system regulations and the current situation of listed companies of the NEEQ Market,this paper can help expand the theoretical depth of research to some extent.However,due to the large quantity of companies in the NEEQ and the limited research on the case company Blue Sky Environmental Protection&Technology Co.,Ltd still cannot represent all the NEEQ companies,though it is relatively representative.This is also the limitation of this study.