Analysis Of The Motivation And Financial Strategy Of Enterprise Northward Transfer

Since the third Plenary Session of the 16th CPC Central Committee,China’s multi-level market construction has officially begun.In 2013,the New Third Board was established to position itself and serve the development of micro,small and medium-sized enterprises,marking the establishment of all the basic components of multi-level capital in China.In2021,the establishment of the North Stock Exchange further contributes to the complete construction of China’s multi-level capital market structure.To promote China’s multi-level market system as an organic whole,in 2016 the State Council proposed to "strengthen the organic links between different levels of markets and improve the multi-level capital market".But at this time,the stock transfer "green channel" has not been opened.By 2022,the NSE will be directly connected to the Science and Technology Innovation Board and the Growth Enterprise Market.Many SMEs have responded positively to the policy,some have successfully transferred to the board and some have announced to stop transferring to the board,some have transferred to the board smoothly and some have experienced ups and downs.This paper will focus on this policy and examine the motivation for SMEs to apply for reboarding and the related financial strategies they implement to achieve a smooth reboarding This paper examines the motivation for SMEs to apply for reboarding and the related financial strategies they implemented to achieve a smooth reboarding,and selects Taixiang as the case study.The analysis of this paper will start with a review and summary of the literature related to multi-level capital markets,transfer and financial strategies in China and abroad.Then identify the main theoretical bases of this paper,financial growth cycle theory,financial strategy theory and information transfer theory,and use them to develop the analysis.After a comparative analysis of the NSE and the GEM,describing the company situation of Taixiang and the events of the transfer.Combining the background of the previous article and relevant theoretical foundations,etc.,the study of the motivation of its transfer from external factors and the internal development factors of Taixiang.Finally,their own financial strategies are analyzed and studied within the structural framework of the analysis of the motivation for switching boards.The study found that SMEs switch to the board because of the need for a better financing environment and other benefits of a higher level of market,and that companies can actively set their goals for switching to the board by developing a sound financial strategy and actively implementing it to eventually achieve their goals.