Research On Motivation And Financial Effect Of Market-Making System In NEEQ

The National Equities Exchange and Quotations,which is called the NEEQ,is an important part of China’s multi-level capital market systems.NEEQ aims to provide a new platform for SMEs with financing difficulties in China.However The downturn in liquidity has seriously affected the financing function of NEEQ market.NEEQ therefore set up a market maker system.With the implementation of the market maker system,it raised a question whether the market maker system can effectively improve the financing efficiency of NEEQ and solve the problem of financing difficulties for SMEs.WE aims to provide reference for the selection of trading system of NEEQ enterprises through the case of the Guizhou Anda Energy Technology.We selects the Guizhou Anda Energy Technology,a company in innovation tier of the NEEQ,which chose to market-making when others chose negotiate transfer in 2016.Based on the theory of information asymmetry and signal transmission theory,We uses comparative analysis method to compare the market-making and the negotiate transfer.We point out that Guizhou Anda Energy Technology change to the market-making transfer for 4 reasons,including helping investors’ exits to reduce the withdraw risk,helping company’s market value return to real value,improving direct financing efficiency,and seeking to enter the innovation tier.In the corresponding analysis of economic consequences,we found that the market maker system can effectively improve the stock liquidity,thus helping institutional investors exit and reduce the withdraw risk.Moreover,it also helped the company’s market value to return to real value,and promoted the direct financing effect.However,the market maker system will also bring some problems,including affecting the subsequent IPO plans,extending expected duration of financing,and limiting financing options.In conclusion,we pointed out that market-making is better than negotiate transfer in the case of Anda Technology.And we further point out some suggestions for the problems caused by marketmaking transfer.