Abstract
As an essential part of the multilayer capital market in China, the detrusion of the NEEQ (National Equities Exchange and Quotations) influences many aspects. Industry structure, market efficiency, fortune allocation will all be promoted to be more reasonable. Certainly, it still leaves much to be undesired, such as deficiency of liquidity, outrageous valuation. However, as related systems implemented gradually, the market could get rid of the trouble.
Highlights
The original basis of the NEEQ was firstly started to accept companies retreated from the Main Board in 2003
The NEEQ plays a more important role than the main board referring to the national transformation [3]
Until the end of 2015, more than 5000 companies have listed on the NEEQ, direct finance up to 121.6 billion RMB versus the GEM (Growth Enterprise Market) 115.6 billion RMB
Summary
The original basis of the NEEQ was firstly started to accept companies retreated from the Main Board in 2003. Unexpectedly, it was not popular with investors, making this board almost virtual. Under the background of Chinese economy transformation and upgrading, a lot of high-tech companies were newly started which need financial support. The government decided to redefine this board to serve the new high-tech companies in 2009 [1]. As it was born, more and more companies began to take it as a chance to promote their development [2]. To confirm that the market operates smoothly and permanently, a more complete system should be implemented in the future [4]
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