Research on the risk of the new OTC market in China

Abstract

After years of development as the main force over the counter market, now the National Equities Exchange and Quotations, commonly known as the new over-the-counter market, has formed a fairly large scale. The number of enterprises grows rapidly and there have been more than 10000 enterprises in the new over-the-counter market today, bringing the trading boom. However, in the thriving new over-the-counter trading, it must be recognized that there are still a lot of risk factors, restricting the market developing healthy and orderly. This paper starts with the current situation of the new over-the-counter market of our country, focusing on the research of the liquidity risk and the valuation risk of the medium-sized and small enterprises share transfer system by means of statistical analysis and comparative analysis. And then analyzes the causes of risk in-depth and proposes some policy recommendations of the market risk prevention and control. Hope to help the market participants understand more about the risk of the new over-the-counter market, especially develop the risk awareness of the market participants, and finally take the risk prevention and control actively. At the same time, the China new over-the-counter market risk prevention and control model would be established and improved, and as a result, it can provide strong financial support for the development of emerging industries, small and medium enterprises and escort the construction of China capital market.