The Impact Of The New Third-Tier Stock Market Expansion On China Stock Markets

With twenty years rapid development of China stock market, Shanghai Stock Exchange and Shenzhen Stock Exchange have been the main trading markets. The market has a considerable size, regardless of the total market capitalization, turnover or the amount of funding are among the world’s major exchanges forefront of the market. However, because of institutional, market and other factors, China’s OTC market development is not satisfactory, including three old board deficiencies, three new board thinly traded since the establishment, regional equity market development disorder like clusters, brokerage counter market just start with high risk, etc., making the size of the OTC market far more less than the exchange market overseas. The common multi-level pyramid structure overseas have become inverted pyramid model in the domestic capital market, which is the contrary to the development of a market economy. So, making a multi-level capital market perfect has become one of the most important tasks to China’s capital market and regulatory bodies in recent years. The official launched expansion of the new three board market in August 2012 marks our multi-level capital market constrcution into the fast lane. This article will examine the new three board market through carding a multi-level capital market, especially the theoretical basis of the OTC market, China market and the OTC exchange market development trend. The atricle will make reference from experience of the developments in developed countries and regions and the impact on the capital market experience, to further explore the empirical methods for three new board expansion of China’s stock market.This study expanded for the several parts:The first is the introduction to this article, mainly on brief description of the background and motivation for the topic, and sorting out related research literature as the theoretical basis of this study. At the same time, making a brief summary of supplement for the lack of previous research and illustrating the research positioning and methods. Then China’s multi-level capital market development, briefly introducing the developments of China’s Exchange Market and OTC market.And The overseas development of the OTC market, introducing the United States, Japan and Taiwan of China OTC market development, and briefly analyzing their impacts on the domestic exchange market. Then is analyzing the impact of three new board market-expansion on China’s securities market, introducing the development of new three board market, theoritically analysing the impact of three new board market-expansion on the China’s securities market, and making the conclusion of relationship between the three new board expansion and the China’s securities market. And the end, on the basis of previous studies, analyzing the existed problems in the current expansion of three new board market, and proposing problems and policy recommendations on the development of our country in the new three board market and the OTC market.