Construction of multilevel capital market and venture capital industry development 13936.doc

Construction of multi-level capital market and venture capital industry development      Abstract capital market and venture capital industry is closely linked. Venture capital industry must rely on sophisticated multi-level capital market support, venture capital market is the Creation of "soil" and run the carrier, the capital markets venture capital industry's support is all-round multi-function, is its important entry and exit channels. At present, China venture capital industry is still in its infancy, single-level capital market system on the stage venture capital operation does not match the right venture capital support is extremely limited. Learn from successful experiences through the United States, China should be established, including the Main Board, GEM market, OTC market, including a complete, multi-level capital market structure, system, and promote the rapid development of venture capital industry to become a "Eleventh Five-Year "During the expansion of foreign investment in new growth point.      Key words multi-level; capital markets; risk investment; Nasdaq Stock Market (NASDAQ)           First, the U.S. multi-level capital market system and the structure of venture capital           (A) the system is sound and the United States multi-layer capital market framework. U.S. multi-level capital market include: (1) focus on the national market (Main Board): There the New York Stock Exchange, American Stock Exchange, NASDAQ National Market 3. Followed by decreasing their company listing requirements, the company according to its size, nature of selection financing market. (2) The regional market: there is the Pacific Exchange, the Western Stock Exchange, Boston Stock Exchange, Philadelphia Stock Exchange and other local markets. Major trading securities of regional companies, while some of the region listed in the national market shares, but also a regional market transactions. (3) "unregistered Exchange" means the Securities Regulatory Commission by the United States exempted from registration according to the local stock exchange for small, mainly local SMEs in trading securities.      (B) the U.S. capital market and venture capital association analysis of      1. The U.S. capital market and venture capital association analysis overview. The U.S. capital market system, large compartmentalized with complete functions, levels and diverse. Both a unified, centralized national market, there are regional, small-scale local market. Made of different sizes, different needs of enterprises, especially venture capital companies can take advantage of capital markets for equity financing. Venture capital is intended primarily for non-listed high-tech enterprises and emerging small and medium sized enterprises, the development of these enterprises are generally through seed, development, growth and maturity in four stages, the four stages of the progressive nature was evident. By the Main Board, GEM market, OTC market under the multi-level capital market system can be fully fit at this stage of venture investment characteristics, and thus the formation of organic linkages and interaction. (1) The OTC markets are basically canceled the listing of the size, profitability and other conditions. The focus of the market regulatory control from the enterprise market shift to a full disclosure of information as the core, to manage the brokerage practitioners as the main means to membership system as the main form in order to broker based on self-regulatory approach. Mainly corresponds with the service at the seed stage and development stage venture capital investment in raising the issue and the corresponding value of assessment, risk diversification and equity flows. (2) The Growth Enterprise Market of clients are mainly small and medium enterprises and high-tech enterprises, and its listing standards than the concentration of the market is low, mainly corresponds to the middle and late stages of development, growth stage and maturity early stage venture capital raising, risk Enterprise assessment, risk dispersion and equity transaction problems. (3) main board market that is primarily a national focus on the market for large corporate finance services, mainly corresponds to the mature, enterprise-scale expansion of late.      This multi-level market system also has a progressive character, echoed the progressive nature of venture capital characteristics that make them complement each other and exchange interaction. Business enterprises in the OTC market, through the cultured, when the scale of operation, operating performance, asset size, financial condition and other conditions to the GEM listing requirements, you can go to the GEM market transactions. Similarly, the Growth Enterprise Market enterprises have been cultivating mature, and in line with the size of the motherboard market operators, operating performance, asset size, financial condition and other market conditions, may also apply to transfer to the motherboard market transactions. On the contrary, the higher level of market transactions when the company lost its listing requirements, then turn back into the meeting a market transaction or delisted. This multi-level market system in the market to overcome the faults formed a nexus of different levels at different stages of venture capital market and the complementary interaction.      2. The U.S. Nasdaq market and venture capital association description. Nasdaq Stock Market by the National Association of Securities Dealers (NASD) was established in 1971, is the world's first and largest electronic stock market. The U.S. NASDAQ market is a multi-level market in securities trading. It consists of the national market, small-cap stock market and the OTC market, composed of three parts, is a typical multi-track system for the implementation of the twin-type multi-level market. In the OTC listed companies without assets, demand and profit track record, as long as the performance of activity logs and core business plan, and there is a market maker is willing to 2-3 of the publicly traded before they are sold, so people are accustomed to call it a zero asset packaging market. OTC market conditions to provide the media by the Nasdaq, after training by the OTC business, if it met the following criteria: annual sales of more than 750,000 U.S. dollars, the share price more than 5 U.S. dollars, 400 million in assets, 2 million U.S. dollars of net assets, Nasdaq small-cap stocks can directly enter the market, without any review process; the same time, if the stock market Nasdaq small-cap companies to the market standard motherboard can also be promoted to the Nasdaq National market or the New York Stock Exchange. On the contrary, then there exists delisting and the delisting mechanism.           2, Analysis of China's capital market structure           (A) the motherboard market for venture capital support for our industry       1. Listed companies engaged in venture capital activities, in order to provide some venture capital funding. At present, the listed companies engaged in venture capital activities have gradually become blurred, all listed companies in high-tech risk investment behavior of the other listed companies based on enterprise development strategy considerations, but also are actively involved in high-tech fields, and thus more or less at risk investment activities. Therefore, the listed companies to participate in venture capital has actually started quietly, but the form of participation and depth is different. Some listed companies, shares or a holding of professional venture capital firms; some listed companies to establish internal venture capital funds or companies, such as Guangzhou, Guangzhou Development Holdings established a wholly-owned Information Industry Investment Management Co., Ltd.; some listed companies and institutions of higher learning, scientific research institutions jointly set up high-tech development or venture capital alliance such as bus equity investments 26.5 million yuan and Shanghai University, Shanghai set up a big bus high-tech Co., Ltd., and so on. In short, a listed company has become China's venture capital industry development in a realistic and important major force in supporting and promoting the development of venture capital industry while also promoting their own development.      2. Venture firms listed on backdoor shell. Motherboard market for venture-backed form of another manifestation of venture backdoor, shell listing. Has been recognized as a publicly traded venture-backed is the best way, in the GEM, OTC markets have not yet opened the case, the realization of domestic listing only option is the Main Board. However, the risk of companies want to market through an initial public offering (IPO) is almost impossible, on the current actual situation, in addition to science and technology venture capital companies to invest in Zhejiang Province, the "Zhejiang University-Time Technology Co., Ltd." has been listed in the IPO , it is difficult to find a second instance of IPO ventures. Therefore, the risk enterprises or start-up phase of high-tech enterprises can only take the backdoor, RTO road.      (B) The status of the development of the SME board in Shenzhen. May 17, 2004, Shenzhen's "SME board" be allowed to set up. The establishment of nearly two years, the listed companies to 50, financing, the amount of 12.0 billion, has achieved very good results. The introduction of the SME board is cautious, however, China's capital market is the economic system transformation in the context of emerging markets, the market mechanism is not yet perfect, imperfect laws and regulations, market development, there are still many structural problems. Currently listed on the SME board companies in addition plate less than or equal 30 million, other standards and motherboards no difference. In other words, continuous 3-year earnings and other conditions also applies to stocks listed on the SME board. Such stocks than a real GEM equity risk is small, but its business has been in previous years, the performance of continuous growth is basically the operation of the future can be inferred, so that imagination is not big, not like a real growth business board stock as high, therefore, deal with more shares of the SME board is to treat the stock as the motherboard can not treat the GEM stocks. Therefore, the introduction of the SME board in Shenzhen is not the GEM, but the seeds of China's second board market.      Venture capital industry development is inseparable from the cultivation of the second board market. For the venture capital is concerned, a venture capital market is like a "import", the secondary market for venture capital is the "export", there is outflow out of the market will have the liquidity and attractiveness of it as it as a complete market. Venture Capital in China there is no reason for a decade to achieve a major development, apart from a market, financial constraints, it is more important point is that venture capital is not "export", can buy can not sell, can be hired but not out, to make venture capital loss of function, impede the venture capital industry. Reposted elsewhere in the paper for free download http:/      (C) OTC status quo. At present, China's three board market (OTC market) including "share transfer agent system," and the local property market. Shenzhen and Shanghai Stock Exchange in 1990, listed one after another opened after the corresponding OTC securities overtly or covertly building has never stopped. In particular, opened in Beijing in 1992 and the NET 2 STAQ trading system, all localities in the bid for hosting the third exchange at the same time, in order to meet the listing requirements of SMEs in many places began to spontaneously explore distribution channels outside the securities.      1. Securities agency share transfer system development. June 29, 2001, in order to solve the original STAQ and the NET system, listed companies and exchange delisting the transfer of shares, Securities Association of China opened the transfer of shares in the securities agency system. It is the present, except for Shanghai and Shenzhen Stock Exchange, the only way to handle the transfer of shares outside of the counter trading system. January 16, 2006, the State Council approval, the Zhongguancun Science Park, the transfer of non-listed shares of share transfer system, the pilot, although the agency function of the system has expanded, but the stock transfer agent business startup and operation of venture capital for unlisted the transfer of shares and distribution companies to provide market-based channels are very limited.      2. Property rights trading market constraints. At present, various types of property rights trading market more than more than 200. Forms of organization of these markets vary, and some registered as a business corporation, and some registered as a corporate. In affiliation also varied, respectively, belong to Economic and Trade Commission, Guo Ziju so. Uneven development of the national property rights trading market, individual market transactions larger scale, better operating conditions, most of the small markets, low incomes, a considerable number of markets are losing money. Property Exchange in disguise for some of the shares split or continuous trading, but imperfect system, management is not strict, implies a huge risk.      At present, the development of China's OTC market, there's "wanton operation of financial institutions, wanton operation of financial business" problem, one important reason is the lax management. Organization and disorderly "financial supermarket", laissez-faire free-counter market will inevitably become chaotic "financial garbage dump", not only failed to play effective support to the venture capital, it will disrupt the venture capital market order.           Third, building our multi-level capital market, promoting the venture capital industry development           (A) continue to play a main board market (centralized trading market) feature. Shanghai Stock Exchange and Shenzhen Stock Exchange is still large and medium enterprises listing and financing of China's main market, but the market has to be for quite some time to adjust, but also need to develop ideas and strategies to reflect on. From the total and scale point of view, is the future of China's Shanghai and Shenzhen markets have remained multi-level market system, a major component.      (B) actively launch second board market. Shenzhen SME board has already begun to run, but the size and capabilities to analyze, but also far from being in place, another in regulating the many problems still exist. From the market demand and the decision-making level of the situation, the SME board market is a multi-level market s