Research On The Legal System Of Market-maker In The Growth Enterprise Market In China

The Launch of the gem market in China mark that our country has preliminarilyestablished main board, small and medium-sized enterprises board, growth enterpriseboard and multi-level capital market on the over-counter trading. The GEM (growthenterprise market) mainly orients to the growing innovative enterprises, with thefocus on the supporting the autonomous-innovated enterprises. The growth enterprisemarket mainly services for high-tech enterprise, which barriers to entry is lower thanthe main board market, and regulatory is relatively looser. Because of a variety ofreasons, the companies on the GEM board have "three high" characteristics: highdegree of uncertainty, high growth and high degree of information asymmetry. Thegrowth enterprise market is independent of the main board market, but continues touse trading system on the main board. Obviously, that goes against the growthenterprise market development.Market-maker system is accompanied by the growth enterprise market, and it playan important role in dealing with the problem of liquidity and stability in the GEM.On February8th,2013, by introducing the system of market-maker in the new thirdboard, it provides some reference for the GEM. Market-makers buy or sell securitiesthrough two-way quotation to their accounts. Market-maker system is designed forthe maintenance of market order, promoting the stock flow and suppressing prices.But these duties need to pay the price. Market-makers essentially are the broker,whoes pursuit is the maximized benifition. We provide partial reductions for themarket-makers on the one hand, such as reducing transaction costs, taxes, tradingprivileges to enhance the enthusiasm of the market; on the other hand, Keep strict tothe regulatory system to prevent them from seeking improper interests, abusing ofprivilege, damaging the interests of small and medium-sized investors and disruptingthe market order. This paper demonstrates powerfully the system of market-makersby using game theory, comparative study and statistic methods. It emphasizes onbringing the market-making system, while on the regulation of market-makers. Thishas become a characteristic of this article. This paper concentrates on analyzing thegrowth enterprise market in China practice problems of introducing market-making system and presenting the international GEM market-makers system developmentexperience, and putting forward feasible suggestions by combining with the realityof our country.This paper mainly divides into four parts. The first part presents the concept of themarket-makers, distinguishes the system of market-maker and the collective tradingthrough bidding, and analyses conprehensively on the practial problems of the GEMin China. The second part clarified the banker and market-maker theory, and statesthe market-maker theoretical basis. The third part analyses the the outside system ofthe market-makers and learns from the practical experience of outside market-makerssystem. The forth part presents the feasibility, practical basis and mode choice of thesystem of the GEM, and puts forward suggestion suitable for the system of themart-makers in China in combination with the the practical situation of the GEM inour country.