China To Establish Multi-level Capital Market Countermeasures

There are only two stock exchanges in Chinese capital market, that is Shanghai stock exchange and Shenzhen stock exchange. The types of listed companies and the variety of exchanges are so few that they can't meet the increasing demand for investment varieties and the financial demand of diversified companies. And the actuality goes against reducing the system risk. The simplex capital market has difficulties in adapting economic development. So we should found a multi-level capital market which ensure the economic development and continuable capital development. From the development experience of foreign mature capital market, I suppose that a multi-level capital market system should include a national exchange, second board market, regional OTC market and property rights capital market. Each market aims at different investors and financial demander and we should arrange different running mode, listed criteria and supervising mode. These submarkets complement, compete and link up each other mutually. These submarkets compose a whole and unitive capital market system. Multi-level capital market is propitious to optimize the resources and capital and can meet diversified investment and financing demand. It helps to fix a reasonable capital price, disperse financial risk and improve financial efficiency. The multi-level capital market system can make the investor and the listed companies invest and work continuablly. The article fully opens out how to develop the four submarkets and found a multi-level capital market system.