The Study On Relationships Between Development Of NEEQ And Financing Constraints Of SMEs

Small and median enterprises(SMEs)play an increasingly important role in China's economy.However,because of the restrictions of some policies and their own development problems,SMEs in China are faced with serious financing constraints,which have become a key factor in the way of SMEs' growth.In order to satisfy the needs of enterprises in different development phases,China aims to establish multi-level capital market.As the specific capital market section designed for SMEs,whether National Equities Exchange And Quotations(NEEQ)has carried out it duty attracts great attention.Since there are no former researches about the relationships between NEEQ and financing restraints of SMEs,the paper studied about the further development of NEEQ from this point of view.This article mainly consists of :Firstly,the paper gave a detailed analysis about the relationships between NEEQ and financing constraints based on the summary of developments and functions of NEEQ.Then the paper researched into system design of NASDAQ and the influences of different policies to financing restraints of SMEs from aspects of hierarchical system,cross-board transferring mechanism,delisting provision and trading system.Finally the paper suggested that China Securities Regulatory Commission(CRSC)improve hierarchical system and trading system,and cross-board transferring mechanism,delisting provision be established.In order to clarify how listing on NEEQ and different trading systems would influence the financing restraints of SMEs and put forward some proposals,the paper conducted a quantitative analysis based on Cash-Cash Flow Sensitivity.By testing three hypothesis,the paper reached the conclusion that getting listed on NEEQ eased the financial constraints of SMEs;market making system eased more financing constraints of listed companies than negotiating transfer;and competing system performs better than market making system.In the end,the paper provide suggestions from development of NEEQ and SMEs.