Non-listed Public Companies In China Equity Market Trading System

Non-listed public company equity trading market is an important part of the multi-level capital market in China. The design of its trading system plays an important role in the entire market system. The development of OTC markets in other countries and regions shows that liquidity has become more concerned compared with transaction cost and trading efficiency. In recent years, hybrid trading system has undergone a rapid development, the application of which is limited. According to practice, market maker system is more suitable for low-level capital market whose liquidity is poor.The lack of liquidity is a common problem in China's existing national OTC market. In order to protect the legitimate interests of investors and securities dealers, market maker trading system should be adopted in the non-listed public company equity trading market of China. The new system adapts to the trend of corporate reform of capital market, and gives full play to the OTC market's basic role.With the reference of the OTCBB market in the U.S., the Emerging stock markets in Taiwan and the PLUS market in the United Kingdom, the author of the paper suggest (1)that quote-driven trading system should gradually become a basic system to improve the liquidity of the non-listed public company equity trading market; (2)that the non-listed public company equity trading market should have a stake in the pricing, turnover and the release of transactions; (3) that the agreement model should be a complementary trading system; (4) and that the number of market-makers for an equity, the acquisition of equity for market makers, and the exemption of obligations should be clearly defined in the market maker system .