The Study On The Motivation And Effect Of Beijing Stock Exchange Listed Companies "Direct Transfer" To The Growth Enterprises Market

Since the establishment in 2006,the New Over-the-counter Market(New OTC Market)has met the financing needs of some small and medium-sized enterprises.However,with the increase in the number of listed enterprises,the New OTC Market has also gradually encountered problems such as lack of liquidity and discount valuation.Therefore,many listed enterprises choose to "indirect transfer" in the way of IPO to the capital market at a higher level,so the New OTC Market has ushered in a "transfer tide".With the continuous disclosure of the defects of the New OTC Market,the country pays more emphasis on the construction of a multi-level capital market and the interconnection of capital markets.Under this background,the selected layer of the New OTC Market was set up.Subsequently,the"Guidance on Listing Companies in the National Small and Medium-sized Enterprises Share Transfer System" was born,marking the establishment of the transfer board system assumption of New OTC Market period in China.In September 2021,Beijing Stock Exchange(BSE)was set up to serve "specialized,special and innovative" enterprises,and further revised the above guidance opinions.In March 2022,Shanghai and Shenzhen Stock exchanges issued relevant measures for the transfer board.Thus,the board transfer system in our country has been formally formed,which also provides the "direct transfer" thinking and corresponding system basis for the New OTC Market listed enterprises and listed companies in BSE to transfer board.Up to now,there are successful practices of "direct transfer",but what causes these enterprises to transfer board and how the effect after transferring the board is worth further discussion.This paper uses case study method to study the motivation and effect of "direct transfer"from BSE to GEM.The reasons for adopting case study method are as follows:First,case study method can deeply analyze the overall process of the "direct transfer to GEM" of listed companies in BSE,so as to make a more comprehensive analysis of its motivation and effect and a more convincing conclusion.Second,the "Guidance for Listing on the New OTC Market" was first proposed in June 2020,and after the establishment of BSE in September 2021,the board transfer system of BSE was officially implemented on March 4,2022,So far,only a handful of enterprises have successfully adopted the method of "direct transfer"in the board transfer system,and the large-sample empirical research method cannot be adopted.The case study method makes it possible to study emerging policies and emerging phenomena.In this paper,Shiyan Taixiang Industry Co.,LTD.(Taixiang Stock for short)is selected as the case study enterprise.There are two main reasons:First,Taixiang Stock started trading on GEM on August 11,2022.It is the first company in BSE to "directly transfer to GEM",which means the successful practice of the transfer policy in GEM,and also opens up a new channel for the growth and expansion of many innovative companies.This case enterprise is typical and timeliness.Second,the stock price,turnover rate and overall market value of Taixiang Stock increased significantly on the first day of listing on GEM.Investors responded strongly to this event and the event itself received high attention from the market.In terms of analysis,this paper firstly summarizes the basic situation of Taixiang Stock and the process of "direct transfer".Secondly,from the external market environment of enterprises and their own development,it analyzes the motivation of board transfer.Then,the effect of board transfer is analyzed from the Angle of cost and capital market.Finally,the paper summarizes the whole article,draws a conclusion,and puts forward suggestions from the perspectives of the proposed transfer board company,regulatory authorities,BSE and board transfer system.On the basis of case analysis,this paper comes to the following conclusions:First,"direct board transfer " can help reduce the cost of transfer board.By comparing the traditional IPO transfer board with the "direct board transfer" described in this paper,it is found that "direct board transfer" has certain advantages in terms of time and capital consumption.Second,the market has a positive reaction to the "direct board transfer".As the first company transferring from BSE to GEM directly,Taixiang Stock liquidity,valuation level and stock price have been greatly improved after the board transfer,so it can be seen that the board transfer can bring positive market effect for enterprises in the short term.Third,the board transfer is conducive to the enterprises to better complete the layout of new industries.Board transfer can bring higher visibility and investment for enterprises,which is conducive to the smooth implementation of expansion strategy,rapid layout of new areas,and improve the ability of enterprises to resist risks.The theoretical significance of this paper is reflected in three aspects:First,this paper expands the domestic theoretical research related to the board transfer from the perspective of motivation and effect.Since the effectiveness of our securities market is weak and the board transfer system is constantly being explored and perfected,Chinese scholars focus more on the research of the construction of the rotating board system and the selection of the rotating board route,and lack of research on the motivations and effects of the enterprise rotating board.This paper is conducive to enriching the research literature in the related field.Second,to provide empirical evidence from China for the study of the motivation and effect of board transfer.Since China’s capital market started relatively late compared with foreign countries,there is a big gap between China and foreign countries in terms of operation experience of the transfer mechanism.Therefore,most domestic scholars take the mature foreign transfer mechanism as a template,put forward ideas on the motivation and effect of the transfer mechanism,and then carry out empirical research to test.As a result,the root cause of Chinese enterprises’ turning board as well as the implementation effect of the turning board cannot be pioneering explored.With the help of the case study method,this paper starts from the typical cases of our country,in order to get the research theory more suitable for the national conditions.Thirdly,from the perspective of "direct transfer",this paper expands the case studies related to board transfer in China.The transfer enterprises on the New OTC Market mentioned in the existing domestic studies refer to those who conduct board transfer by delisting on the New OTC Market and then listing on other markets in the form of IPO,namely "indirect transfer" in this paper.Few scholars carry out research and analysis from the perspective of "direct transfer".This paper discusses from the perspective of "direct transfer",providing a new research entry point.At the same time,this paper also has a profound practical significance,which is reflected in the following three aspects:First,it provides a new idea for other companies planning to transfer to the board of Beijing Stock Exchange.By referring to the analysis and research of the first enterprise from BSE to GEM through "direct transfer",experience can be accumulated to help decision-making;Second,for the majority of investors,the analysis and research on the effect of "direct transfer" of typical cases of enterprises can reduce the information asymmetry between buyers and sellers in the market to some extent,and avoid potential investment risks for investors.Finally,for the policy-making department,after understanding the motivation and effect of specific enterprises’ direct transfer,it can be more targeted to improve the transfer policy,strengthen the institutional construction of BSE,meet the capital needs of enterprises,and provide a favorable environment for the further development of small and medium-sized enterprises.