Research On The Influence Of Market-Maker Trading System On The Liquidity Of China's New Third Board

The New Third Board is an important pole of China's capital market,mainly providing financing channels for small and medium-sized enterprises.The functions of price discovery,resource allocation,and financing of securities market must be realized with good liquidity.Since its inception,the New Third Board has always faced the problem of insufficient liquidity,and the market maker trading system has been introduced in this context.At the beginning of the introduction,it coincided with the stock market's rising marke,and the liquidity indicators improved significantly.In the short term,market liquidity was significantly improved.Affected by the cold winter of the capital market,the liquidity of the New Third Board market has declined significantly since 2017.The overall turnover rate indicator in 2018 is further entangled in 2017.The New Third Board is in a liquidity crisis,and the market is questioning the market trading system.Domestic scholars have not yet reached an agreement on whether the market maker trading system will improve the liquidity of the New Third Board market.Based on the research results of scholars at home and abroad,based on the market microstructure theory,the theoretical analysis framework between the market maker trading system and the liquidity of the new three board market is constructed.Stock liquidity is a multi-dimensional concept.It can be split from four dimensions:timeliness,depth,breadth and elasticity.By analyzing the mechanism of market maker trading system affecting the liquidity of the New Third Board,the research hypothesis is proposed.In the empirical part,in order to test whether the market maker trading system really improve s the liquidity of the New Third Board and from which dimensions to improve liquidity.The regression analysis of the four dimensions of liquidity shows that the market maker trading system significantly improves the liquidity of the timeliness and width dimensions,but inhibits the liquidity of the depth and elasticity dimensions.The comprehensive liquidity index was used to test the robustness.It was found that despite the sluggish market in the New Third Board market in recent years,the market maker trading system has improved the liquidity level of the New Third Board market since its imple mentatio.Compared with the Nasdaq market,C hina's new three board market is still in its infancy,and the market maker trading system needs to be further improved.At the same time,the entry barrier for investors in China's new three-board market is too high,which is also an important reason for its liquidity.Based on this,we start from the aspects of perfecting the market maker trading system and establishing a multi-level investor structure,and propose policy recommendations.By increasing the number of new market makers,improving the market maker evaluation system,and setting up a separate market maker incentive and restraint mechanism,we will strengthen the whole process management of market makers to ensure the professionalism and market enthusiasm of market makers..At the same time,appropriately reduce the entry barrier for new three-board investors,and further classify and implement differentiated management of new three-board investors by nature,investment level,and financial strength to enrich the investor body.Activate stock funds,guide incremental funds to enter the market,match the size of the new three board investors with the market size,and create a new three-board market with reasonable prices,active financing,transparency and efficiency,so that it can better undertake the financing of small and medium-sized enterprises.Efficiency,financing scale,and responsibility for serving the real economy contribute to the high-quality development of China's economy.