mbt shoes sale On the second board market in the i

On the second board market in the preliminary study

Key words: second board market; high-tech companies; venture capital a second board market overview of the second board market (SecondBoard) also known as the Growth Enterprise Market, the SME market and small cap share market, with the main board (MainBoard, or said first board) corresponds to the concept, especially outside the main board specifically for emerging companies and SMEs in the new capital market financing channels. It relies on computer networks, securities trading, and venture investments for the exit, the operating results of listed companies and asset requirements of a wide scale, but the scope of information disclosure and the main requirements are stringent. This paper from China Union WWW.LWLM.COM collected. Second board market is a national capital market is an important component of the Main Board of the fundamental difference is that a different listing standards, services, mainly for small and medium sized high-tech enterprises. Experience of other countries show that the second board market can promote the development of new industries, many countries have set up its main purpose is for the emerging small and medium sized technology companies to provide new financing channels, as companies in the early days of the risks, it is difficult to obtain loans from banks , pure debt will make the asset-liability ratio is too high, indirect financing channels; the Main Board listing standards of these enterprises is far too strict, making it difficult to enter the motherboard market for equity financing, in this case, the second Market came into being. Second board market for small and medium sized technology companies in venture capital and capital market development has a unique support functions, their development can provide a good market environment, including continuous funding,oakley sunglasses sale, and optimization recommendations and other general functions. The second board market is mainly in the entrepreneurial process to resolve infant stage, the late and early stages of industrial enterprises in terms of raising capital, as well as the value of these enterprises and assets assessment, risk diversification, equity transactions and venture capital issues. In addition, the second board market has a unique exit mechanism for venture capital funds. Venture capital is characterized by the proliferation of forms of capital to get return on investment, and activities to maintain the cycle of capital flows Received Date :1999-09-13 of. When the venture capital to help the company through a period of highest risk, you should be through the second board market, OTC, or merger, liquidation, etc. to withdraw, to obtain investment returns and enter the next round of business. Among them, the second board market withdrawal of venture capital is considered to be the best channel. Through the second board market, to help start direct financing, venture capital institutions to promote the transfer and cash equity, to achieve capital proliferation, stimulate new business investment, ensure that the entire cycle of venture capital chain . Visible, venture capital development and operation of the second board market there is a positive correlation between: the development of venture capital for the second board market, to train a large high-growth companies, which in turn active stock market listing, the second board market for venture capital provide exit window, a stock market will tend to improve greatly facilitate the development of venture capital. Therefore, in addition to conventional design of the stock market, an independent second board stock market development in many countries is the common practice of venture capital. Second, the developed countries of the Second Board many developed countries, emerging companies and SMEs play an important role in economic development , in technological innovation and employment has played a significant role in promoting. Especially in recent years high-tech companies in Europe and America the great process of economic development to promote the role of governments around the world has attracted the attention and company. For example, the United States accounting for small business employment of total employment 六成, 80 years approximately Qicheng technological innovation done by small businesses. International experience shows that the developed countries in managing the Main Board listed companies to ensure their normal operation of the premise, both have established a high-tech venture companies to issue stock-based second board market. For example, U.S. counter (OTC) market and on this basis, developed on the Nasdaq (NASDAQ) market (National Association of Securities Dealers Automated Quotations system) is to not have the qualifications listed on the stock exchange for SMEs established stock exchange. NASDAQ became operational in 1971, becoming the fastest growing throughout the United States stock market, now has five thousand listed companies, total annual turnover has exceeded the New York Stock Exchange. Currently the most popular second board market in Germany, New Market (NewerMarket), which since its inception in March 1997, has emerged as one of the best performing stock exchanges. In addition, two major international markets including the UK board Alternative Investment Market (AIM), France’s new market (LeNouveauMarche) and evolved on this basis, the European New Market (EURONM), European Securities Dealers Automated Quotation system of economic (EASDAQ), and the Singapore Exchange Securities Trading Automated Quotation System (SESDAQ), Malaysia and the Securities and Exchange Automated Quotation System (MESDAQ), etc., in addition to the Chinese Foundation of Taiwan militia GTSM (ROSE). Some well-known international high-tech companies such as Intel (Intel), Microsoft (Microsoft), Apple (Apple), are listed in the second board after the rapid growth. Second board market in developed countries, the United States NASEAQ the most successful, the greatest impact. It has become the world’s second largest securities market, will be with the U.S. Exchange (AMEX) merged. Its main success is: NASDAQ through good institutional arrangements and a clear positioning and maintain the liquidity of the market, the U.S. high-tech industries to flourish and have the potential to provide NASDAQ listed companies. This also makes the NASDAQ market for many second board established template. Developed countries,mbt shoes sale, the second board market has the following characteristics: for the emerging high-growth and high-tech companies; lower listing requirements; listed companies to disclose the information and as much as the Main Board listed company; contains significant risk warning statements, investors risk conceited; companies are required to have a formal regulation; market formal management. Second board market is the cradle of high-tech companies, and risky high-tech companies, the establishment of short, asset size is small, so that the second board market has a high systemic risk. This requires the second board market, the institutional framework should be adapted to the characteristics of high-tech companies. Developed countries, the Second Board of the mature market operation mechanism and successful experience, not difficult to find, listing standards, trading system, the regulatory mechanism is the second board market, to ensure the smooth operation of the core systems. 1. Listing standards. If the emerging high-tech companies on the Main Board listed companies in accordance with the historical earnings, net assets, operating results and other provisions, the general condition of the market reach. Therefore, the second board listing standards lower than the motherboard market, more attention to the emerging company’s future growth potential. However, the success rate of venture capital is generally 5% to 20% greater risk of high-tech companies, so that the second board market has a high systematic risk, while listing standards will loose some of the speculators an opportunity to exploit. Therefore, the development of listing criteria, the second board market should be considered in the healthy development of the interests of investors and the balance between national industrial policy. 2. Trading system. Common stock for SMEs the problem of poor liquidity, the developed countries in addition to increasing market transparency and standardization, but also by improving the market trading system to be addressed. A typical example is the U.S. NASDAQ’s trading system, it maintains a competitive market maker system for trading through electronic networks, the formation of the OTC market listing standards. The role of market makers is the largest active securities transactions, improve market liquidity. NASDAQ requirements for each stock at least four market makers make a market, to limit the ability to offer their monopoly and allow market makers to carry out margin trading business. Meanwhile, more than 60 large financial institutions to provide trade financing for the market makers, so that an adequate supply of funds in the market,mbt shoes clearance, thus improving market liquidity. 3. Regulatory mechanism. For the actual situation of the second board market, to ensure quality and efficiency of operation of the market, companies must be strict regulation and market supervision. There are two regulatory mechanisms: (1) emphasis on information disclosure to investors on the basis of self-assurance. This is because the high-tech enterprise integrated risk factor, has strict limits on the listed company information disclosure requirements, thus ensuring a high degree of market transparency for investors and timely assessment of the company’s growth prospects. (2) emphasize the quality of regulatory requirements for issuers and investors that the responsibility of companies listed on the register and take the corresponding examination and approval system. The examination and approval system does not meet the law of development of high-tech companies, causing many problems, therefore, developed countries generally use the registration system. Third, Hong Kong’s second board market of the Stock Exchange of Hong Kong 1986 proposed the establishment of a second board in Hong Kong the idea of the market, after years of no progress were for some reason. In 1997, the Stock Exchange established a task force to study its feasibility, and the May 1998, the Exchange initiated the establishment of GEM model, in September, the establishment of the Stock Exchange Council formally adopted the high-tech companies listed on the GEM market target resolution, the resolution was followed by Hong Kong Securities and Futures Commission and the Legislative Council support. December, the Stock Exchange Council formally adopted the Growth Enterprise Market of the initial listing requirements, plan the operation of the fourth quarter of 1999, the first recommendation of 20 to 30 high-quality listing. The end of March 1999,abercrombie uk, the Exchange will be prepared to submit the GEM Listing Rules, the SFC for consideration. Thus, after 13 years of unremitting exploration and hard work, the concept of Hong Kong GEM market will eventually be implemented. The establishment of the Hong Kong Growth Enterprise Market profound reasons: (1) conducive to the transformation of our economy. The development of venture capital services in high-tech companies, can become a GEM incubator for high technology companies. Meanwhile, the vast majority of SMEs do not meet the criteria listed on the Main Board, GEM is the best way they raise funds. (2) Hong Kong and mainland China is eager to high-tech companies and SMEs listed on the GEM market in order to raise funds to develop high value-added products and to promote healthy mainland and Hong Kong’s economic mutual relations. (3) in the Asian financial turmoil and international economic conditions,abercrombie fitch outlet, increased competition, Hong Kong is facing severe challenges. The establishment of the Growth Enterprise Market size is conducive to expanding capital markets and increase market level, strengthen Hong Kong’s international financial center. The establishment of the Hong Kong Growth Enterprise Market is intended primarily for small and medium high-tech enterprises to provide a better financing channels, to promote their development, while creating more jobs, attract foreign investment persons. As co-financing of enterprises in Taiwan and the plate, the development of technology industries in Hong Kong to strengthen its international trading and financial center of an important development strategy. Hong Kong Venture market has the following main features: 1. With the same status as the Main Board, an independent front-line management and the Listing Rules. Selection of the object market is mainly the mainland, Hong Kong, Taiwan, and the need for financing expansion of small and medium sized companies with growth potential, listing application procedure is relatively simple and quick. 2. And the biggest difference is that the Main Board, Main Board listed companies to apply to have 3 years of record profits, while the second board market in the history of no profit or even a loss , but need to have 2 years of active records, the company’s business must be a single, better-managed. 3. By ancillary market model, the foreign exchange market opened up within the board independent of the trading board, by notice displayed trading system trading, with the Main Board listing standards different, independent the operation of the rights management system. 4. Only accept equity securities and investment techniques familiar to investors, to accept the company’s incorporation in all legal areas, clearing and settlement done by the central clearing system. 5. Be treated as information disclosure as the most important market for information disclosure of listed companies more stringent requirements, disclosure is the essence of the second board market. Agency responsible for the authenticity of company information, the Exchange will provide an independent website GEM, as a market reference to a primary communication channel. 6. GEM’s basic regulatory approach is to protect the interests of investors and ensure market integrity. Regulatory regime’s ultimate goal is to ensure that market users, investors, issuers and intermediaries such as participants, believe that the market is clean and fair. Sponsor, the SEHK and the SFC is responsible for the supervision of the GEM, follow the Fourth, a second board market in our analysis 20 years of reform and opening up, so that China’s capital market has taken shape, and has accumulated rich experience in reform, China’s main board market in the overall economic reform and investment and financing reform to play a huge role. But the market risk capital market and the construction of different motherboard, the motherboard market as conventional financing for the company’s standards are very complete, which established standards for mature companies, are the basis for the development of entrepreneurial high-tech companies do not have . Recently, as a second board in Hong Kong plans to implement, mainland enterprises, especially private high-tech enterprises have shown unprecedented enthusiasm and hope in our country the voice of a second board market is also growing. Comprehensive analysis of international experience and specific national circumstances, I think that China has established a lower listing standards of services for small and medium sized companies the second board market is very necessary. This is because:
     