The Research Of Small-and-medium Enterprise Financing In US OTCBB Capital Market

After the reform and opening-up policy was implemented in China for over 20 years, there are great changes, including the management systems of enterprises, China government's corresponding industrial&financial policy, people's living standard, conception, etc., These changes partly came from the impact brought by foreign capital and foreign enterprise, yet mostly originated from the development of Chinese small-and-medium enterprises (SME), especially the SME in Yangtze Delta area Zhujiang River Delta area. The social benefit brought by SME is enormous, including prompting the local economy, increasing the positions improving people's living standards. However SME met the effect of capital bottleneck after develops into certain stage.. Such a bottleneck has its one's own reasons, including relatively smaller registered capital and business scale, un-mature administration structure, familial management, narrow capital source. Also it is resulting from backwardness of industrial&financial policy and financial system mismatching with present economy system.After 10 years of development, fund shortage has been the bottleneck of SME. In this article it is pointed out that SME listing in US capital market is a theoretical question, more importantly it is a realistic problem. Going public on OTCBB, as a shortcut to raise money to small-and-medium enterprises, was adopted in succession and followed by numerous enterprises.In terms of the analyzing method and content, the thesis falls into five main parts:The first part mainly analyzed the capital-raising characteristics of small-and-medium enterprises, along with their advantages and disadvantages. To most of them, the three main capital-raising channels in domestic have rather big barriers and quite a few restrictive conditions. Therefore, more and more small-and-medium enterprises began to consider the way of going public overseas.The second part is focused on theoretical analysis. The article mainly introduces the OTCBB market.The third part is an all-sides analysis of the advantages and disadvantages of going public on OTCBB based on some case studies.The forth part is made of case study.The fifth part is from the above study, a conclusion is drawn that, going public on OTCBB provides a new financing way for the domestic small-and-medium enterprises. US capital market is more competitive regarding the expenses, period and capital volume. But, at the same time, there are some difficulty. The enterprises should study the situation actively, handle it prudently, and act according to their own capacities. Moreover, they should precisely weigh their conditions, make good plan of the needs and uses for the capital financed and choose the suitable opportunity and forms in raising capital, so as to genuinely promote the enterprises'development.