Research On OTC Market Operational Pattern In Binhai New Area Of Tianjin

As an important component of multi-layer capital market, foreign well-developed capital markets pay much attention to the development of OTC (Over the Counter) market, even earlier than the development of exchanges. However, because of special conditions, the development of OTC market in China has fallen behind. Along with economic development at home and abroad, on both the theory and the practice of foreign capital markets, China has gradually recognized that it is very important for economic development to set up the multi-layer capital market, especially OTC market. Many cities of China were all doing the relevant tries. Tianjin, Beijing, Shanghai and other cities were all eager to become China's first pilot area of OTC market. On March 17th, 2008, State Council approved to establish OTC market in Tianjin Binhai New Area. It is an important step that improves and perfects China's multi-layer capital market system; it is an useful complement for the main board, small and medium-sized enterprise board and growth enterprises market; it reflects that China is concerned about the investment and financing demands of the majority of small and medium-sized enterprises.Under this background, based on theories of multi-layer capital market and OTC market, referred to matured experiences of OTC market operational pattern abroad, and combined situations of domestic capital market and actual of Tianjin Binhai New Area, a conception in operational pattern of OTC which is upcoming in Tianjin Binhai New Area was proposed in this article.Based on the above, this article is divided into five parts. The first chapter explains the background and significance of selecting the subject and studies the relevant theoretical achievements and practical experiences. The second chapter introduces the concepts and theories about multi-layer capital market and OTC market operational pattern. It points out that the multi-layer capital market is the inevitable result of market segmentation and OTC market is an important component of the multi-layer capital market. And it defines the frame structure of OTC market operational pattern which studies in this article. The third chapter reviewed the history of China's OTC market, and make the necessity and feasibility analysis for the existence of the market. And through the analysis, it points out that, under the environment that the US subprime mortgage crisis is sweeping through the global economic, China's OTC market has some development opportunities. In the fourth chapter, by analyzing OTC markets'developing experience of US, Britain and Taiwan, it summarized the enlightenment for operational pattern of China's OTC market. The last chapter systematically discusses the conception of OTC market operational pattern in Binhai New Area of Tianjin. The operational pattern includes three aspects: establishment pattern, transaction pattern and supervise pattern.