Research And Analysis On The Turn Board Mechanism In New Over-the-Counter Market

In recent years, China's multi-level capital market system has developed in a rapid and diversified manner, while sound capital market can promote the sustainable, healthy and stable development of national economy; whether the capital market is sound or not is highly dependent on whether there are complete systems as well as multi-level and all-directional structures. Chinese capital market still has a long to go in terms of satisfying the financing demand of different types of enterprises, creating an equal, efficient and orderly legal environment and promoting the development and prosperity of multi-level capital market. Currently, the turn board system has not been established in China's capital market, but has been practiced and developed maturely in the capital market of developed countries and regions. The capital subject represented by the new over-the-counter market in China's capital market has begun to glow with strong vitality and flourish in various fields of capital market. New over-the-counter market is one of the major financing channels for small and medium enterprises; to introduce the turn board system is conducive for the high-tech enterprises in the park to directly going on second-board market, SME Board and main-board market, which is of great significance to the development of new over-the-counter market. Although the new over-the-counter market is showing a strong momentum of development, it's still confronted with many problems demanding prompt solution due to late startup and incomplete system, etc. If the problems can't be solved properly, they will constrain the development potential of the enterprises in new over-the-counter market and even hinder the development of the whole market.New over-the-counter market assumes a particular connecting link between the preceding and the following in the overall stock market structure, therefore it is necessary to conduct in-depth research on how to set up a favorable interactive relation between new over-the-counter market and other markets and the research on the turn board mechanism construction is urgently needed to be on the scholar's agenda. The turn board mechanism in new over-the-counter market should first be highly valued by relevant sectors and to draw upon turn board experience according to a comparatively sound capital market in foreign countries. Besides, feasible regulatory framework should be put forward to the turn board mechanism in new over-the-counter market combining the specific market quotation in China and it should be released cautiously in light of the practical operation situation in the market. The introduction and implementation of the turn board mechanism in new over-the-counter market calls for relevant supporting mechanism. Against the back drop of China's booming economy and improving multi-layer capital market construction, a dynamic optimization of the turn board mechanism in new over-the-counter market will surely benefit micro-, small-, and medium-sized businesses to offer diversified channels for truly addressing the difficulties in financing for such businesses.On the basis of analyzing the development status of new over-the-counter market in China, the paper focuses on the conditions and process of turn board as well as the supervisory systems and carries out a case study of the turn board practice of SOJO Electric. Through case analysis, the paper analyzes and probes into the problems that the domestic enterprises in new over-the-counter market are confronted with in the turn board process, and proposes the reasonable suggestions and countermeasures. Meanwhile, the legal systems and rules on the turn board of new over-the-counter market in China are clarified with a view to preventing the risks arising from the process, safeguarding and maintaining the legal rights and interests of market entities, driving the development of capital market and further improving the multi-level capital market system.