Research On The Effect Of Kailun’s Transfer From Neeq To The Growth Enterprise Market

Since the expansion of the NEEQ to the whole country in 2013,the number of listed companies has grown rapidly.With the rapid development of NEEQ,the operating efficiency and asset quality of companies have been seriously differentiated,which causes bad effect on boosting investors’ confidence.The NEEQ market has introduced the market maker system,set up the hierarchical system,and also implemented the bidding trading system to improve the market transaction volume.However,the current NEEQ market cannot meet the needs of some high-quality companies,so many companies have a willingness of switching to other market in order to accelerate their development.In recent years,the increase in the transfer of companies listed on the NEEQ has accelerated significantly.These companies have paid a lot of time and capital costs for the transfer,but has the transfer really promoted the development of the company? In order to solve this problem,this paper compares the performance of financing,stock liquidity,financial performance,valuation,and brand influence before and after the transfer from a broader and comprehensive perspective,trying to judge the effectiveness of the transfer.The article selects the first company in the construction waterproofing industry which successfully transferred-Kai Lun Shares as the research object.This paper introduces the background and process of the transfer of Kai Lun Shares,and analyzes the four major reasons for Kai Lun Shares to transfer the board: improving financing conditions,improving stock liquidity,improving financial conditions,and enhancing company valuation.In terms of the analysis of the effect of Kai Lun’s transfer from the NEEQ market to the Chi Next,this paper finds that: first,the transfer improved Kai Lun Shares’ financing capacity and valuation level,at the same time the company’s brand influence also elevated;second,the listing exchange expanded the company’s scale of revenue,improved its revenue quality as well as its profitability,Kai Lun Shares experienced a dramatical increase in its growth ability;third,although the transfer helped Kai Lun Shares to raise more funds,it has not fundamentally improved the company’s solvency,Kai Lun Shares should strengthen accounts receivable management and control the company’s financial risks;fourth,the transfer makes the company more dependent on financing activities to meet its capital needs,and the capacity of generating cash of the campany’s daily operating activities needs to be improved urgently.In general,the transfer of Kai Lun shares has achieved remarkable results,but the company still needs to pay attention to its own financial risks and the ability to generate cash from operating activities.Through the analysis of the above aspects,this paper puts forward some suggestions for the enterprises that intend to transfer to other market: enterprises should consider whether they need to transfer according to their actual situation,and choose a market segment suitable for their own development,instead of blindly following the trend;they should also make good plan of fund to be raised before the transfer;and they should also actively fulfill their commitment to their use of funds;besides,they should always insist on improving their own innovation capabilities.As for NEEQ,this paper believes that the threshold for investors’ capital should be lowered,the risk rating standards for investors should be diversified;also,public funds should be introduced more actively;and information disclosure of companies listed on NEEQ market should be strengthened.Finally,for the construction of a multi-level capital market,this paper believes that the market size of NEEQ should be continuously expanded and the linkage between different levels of the capital market should be strengthened.