Research On Equity Financing Efficiency Of The NEEQ Concept Stock

Both in China and in other nations, SMEs are the important dynamics and factors to improve a nation’s economy. How to solve the inefficiency of SMEs’ financing and meet their financing demands is one of the most difficult problems and research topics. More than80%of the SMEs financing in China relies on bank loans, which are indirect. The Lack of directly equity financing activities results from that most SMEs are not qualified to being listed in the main security markets. Even though the there have been some regional equity exchange centers existed for a long time, due to the geographical disadvantages and the small quantities of investors, these centers are still in thin-trade,lack liquidity, and can’t meet the SMEs need.The National Equities Exchange and Quotations (NEEQ), is an important part of the multi-level capital markets in China, establishes an effective communication bridge between the main financing markets and the small-and-medium-sized enterprise financing needs and is also the main task of financing system reform put forward in the third plenary session of18th meeting’s. Since2013, a large number of SMEs have been listed or are preparing to be listed in the NEEQ:163companies were listed in2013, making336companies have been listed there in total.On the other hand, the number of deals and volumes is also increasing significantly, which lead me to conclude that the NEEQ has contributed a lot to foster the SMEs and finance their activities. Discussing and researching the efficiency of NEEQ’s listed companies is urgent and important in the current situations where the NEEQ will experience an expansion in September under the background of the social financing activities are limited.Based on the reviews of the foreign and domestic discussions and studies of former relevant enterprises’ financing efficiency, this dissertation introduces the regional equity exchange centers in various areas and the history of NEEQ, creatively put forwards the concept of NEEQ Concept Stocks and then introduces the general situation of NEEQ’s present financing situations and the listing process, such as the number and classification of listed companies,the dealing situation,direct offering,relative valuation and switch market situationThis dissertation also analyzes the factors which determine the companies’ financing efficiency detailly,make the theoritical basis of sample datas,select asset,financing cost,debt to asset ratio as the input variables,net profit growth rate, main business revenue growth,asset turnover as output variables.Use DEA model of CCR,BBC and Malmquist method to a comprehensive evaluate and analyze succeed-switch enterprises,large-holding listed company’s equities enterprises and frequently second-offering and trading enterprises,totally of56individual stocks financing efficiency from time-series, industry distrubiton and ineffiency-analysis three different dimensions. At last, this dissertation puts forward suggestions to improve the efficiency of the NEEQ’s listed companies’ financing activities:the listed companies should make their own efforts to optimize financing structures, to improve their science and technology level and to take initiative to cooperate with other enterprises. The financial market should establish a market-oriented registration system, a market maker trading system and a quit market system. The government should support the listed companies in policy and simultaneously severely punished the illegal activities. These three main entities involved should work together in a consistent way..This dissertation is representative, farsighted and predictive. It can be seen as a successful reference in the future to the way improving the efficiency of the whole financial markets.