Research On Market Liquidity Of New Third Board Innovation Layer In China

As a share transfer system in China,the New OTC Market has demonstrated rapid development since it was officially unveiled on January 16^th,2013 and has ascended to the third largest stock exchange in China besides the Shanghai and Shenzhen Stock Exchange.There are more than 10,000 companies being listed in the market by the end of 2017.Since June 2016,the stratification system has been formally implemented by China's New OTC Market.On May 30^th,2017 when stratification system has been implemented for one year,the New OTC Market was adjusted for the first time after stratification.A total of 1,393 companies were included in the innovation layer,accounting for 12.53%of all 11,113 companies.Despite that the innovative companies have laid the foundation for the fresh blood input of China to the growth enterprises market and small and medium sized board market,from the perspectives of the trading process between investors and financiers as well as the development of the new innovation layer of the third board,as the leading role of listed companies of the New OTC Market,the innovative companies assume the shortcomings of difficult valuation,inactive equity trading and inadequate market liquidity,which has led to the difficulty of standardizing the financing of the equity transfer system in the whole country.Methods of literature review and empirical analysis will be adopted in this paper to analyze the market liquidity of the new three-board innovation layer.Firstly,the development history and hierarchical system of the New OTC Market will be introduced,followed by the analysis of the current liquidity situation of the New OTC Market innovation layer.On this basis,the factors that affect the liquidity of the New OTC Market innovation layer will be explored and the factors that exert substantial influence on the liquidity of the New OTC Market innovation layer will be pursued through the establishment of regression model.Finally,the countermeasures of how to achieve the improvement of the liquidity of New OTC Market innovation layer are put forward by combining with reality.The innovation of this paper is that there are few studies on the liquidity of the New OTC Market in academic circles.There is less research on the liquidity of innovation layer in the New OTC Market.The author makes an empirical analysis and Research on the liquidity of high-quality enterprises in the New OTC Market.The factors affecting the liquidity of the innovative layer of the New OTC Market include total assets,net interest rate,return on net assets,compound growth rate of operating income,threshold of investors and market-making system.Finally,according to the conclusions of the study,the paper gives some countermeasures and suggestions on how to improve the New OTC Market innovation enterprisesThe outline of this paper is as follows:The first is an introduction.The introduction is mainly a summary of the methods,research significance,research methods and research content,meanings and contents of the subjects to be studied.The related research status at home and abroad involved in this paper will be reviewed and certain concepts will be defined.In addition to briefly introducing the research and development of liquidity theory at home and abroad,this part focuses on the current situation of liquidity researches in China's New OTC Market.At the same time,the research of this article analyses the innovation and deficiencies of this paper.This chapter is the entry point of how to achieve the improvement of the liquidity of innovative enterprises in the New OTC Market.In the second chapter,the development history of the New OTC Market and China's multi-level capital market structure are firstly introduced,followed by a detailed description and analysis of the liquidity status of the New OTC Market innovative enterprises,which lays the foundation for the empirical analysis of the factors affecting the liquidity of the New OTC Market.The factors affecting the market liquidity of the New OTC Market innovation layer are illustrated in the third chapter,which are mainly divided into macro policy factors and micro enterprise factors.The factors affecting the liquidity of the New OTC Market innovation enterprises are summarized and analyzed to obtain the major factors.In the fourth chapter,the empirical analysis of the factors affecting the liquidity of the New OTC Market innovation layer is carried out and representative samples are selected for statistical analysis and regression analysis.The countermeasures and suggestions are put forward in the fifth chapter.On the basis of a series of research and empirical analysis in the above chapters,the major conclusions that are drawn in this paper are summarized while the countermeasures and suggestions for improving the liquidity of the New OTC Market innovation enterprises are proposed.The sixth chapter is about conclusions and prospects.As the last chapter,this part is mainly a summary of the whole paper,in which the inadequacies of the research in this paper as well as the content and direction of further research are pointed out.It is expected that the study can provide certain reference and guidance for the improvement of the market innovation layer.