A Study On The Determinants In The Construction Of The Chinese Second-Board Market

With the fact that China is building a multi-layer capital market, this article analyzes the current characteristics of Chinese capital market, pointing out the meaning of building Chinese second-board capital market. Currently, the splendid performance of Chinese stock market appeals lots of capital in, the avalanche of too much capital and the price of assets form a virulent circulation, we can believe that the investors who enter in the stock market later than others are responsible for the "bid up effect". Once the capital market appears weak, the whole economics situation will force fatal strike. In this situation, the shunting effect of second-board market will benifit. Though we have disscussed about Chinese second-board market for a long time, the timing when it will appear is not sure by now. Then analyzes the successful and unsuccessful experiences of foreign second-board markets, compared with Chinese realities, make rational reviews from many sides such as institution, resources, transaction mechanism, investors and other assorted factors, aiming to find out the problems hidden behind the popularity of disscussion about second-board market. According to the actuality of Chinese venture capital market, in this artical, we describe the venture capital has support effect for the resources of second-board market. Then, a summary of theories and policies which literates and officials dicussed for the preparation of the building of second-board market is made. Though recently, there are fewer discussion about the construction of Chinese second-board market, the opening of this second layer market is necessary to decrease the risk of capital market's breakdown. Finally, based on our analysis and conclutions, we develop the suggestions when we continue the construction of second-board market.