Research On The Effect Of Transfer From The NEEQ Market To GEM

China’s NEEQ market began to pilot in 2006 and expanded in 2013,and then ushered in rapid development,and the number of listed companies increased spurt.In the development of the market economy,the NEEQ market is an important part of China’s multi-level capital market,which can effectively alleviate the financing needs and liquidity shortages of SMEs,and is of great significance for promoting the sustainable development of SMEs.But at the same time,the NEEQ market has also encountered some problems that cannot be ignored during the rapid growth of the number of listed companies.For example,the market turnover rate has been declining year by year,the trading volume has continued to slump,and the market liquidity level is far lower than China’s main board and GEM market.Several problems in the NEEQ market have restricted the sustained and healthy development of some listed companies.Therefore,many NEEQ listed companies choose to transfer to high-level capital markets to solve their financing problems.So,what is the effect of the transfer of the NEEQ and whether it has solved the dilemma in the development process is a question that needs research.In this thesis,the first successful company to transfer board after the implementation of the NEEQ market--FLAGCHEM,is taken as the research object,and the actual data before and after the board transfer is used as the research material.Through a detailed introduction to the transfer background,basic overview and transfer situation of FLAGCHEM,the whole process of the transfer is revealed,and then this thesis analyzes the effect of the company’s transfer from the financial and non-financial aspects before and after the transfer.In terms of the financial effects of the transfer of FLAGCHEM,the financial indicators method was used to analyze the profitability,solvency,operating ability and growth ability of the company before and after the transfer.In terms of the non-financial effects,first of all,the event research method was used to analyze the short-term market response of the company’s transfer board,and the company’s transfer board was analyzed by comparing the trend of the stock price of the company’s shares with the GEM index long-term market response;Second,by comparing the liquidity data of FLAGCHEM listed on the NEEQ and the GEM listing and the statistical data of the GEM and NEEQ markets,the increase in stock liquidity brought by the company’s transfer is demonstrated;additionally,by studying the changes in the number of R&D personnel,R&D investment and the number of patents before and after the transfer of FLAGCHEM,the enhancement ofthe company’s innovation capabilities is illustrated;finally,the concentration of equity before and after the transfer of FLAGCHEM is analyzed to showcase the optimization of corporate governance.By analyzing the effect of the transfer of FLAGCHEM to the board,this thesis concludes that the transfer of FLAGCHEM to the GEM has achieved significant financial and non-financial effects.First of all,when analyzing the financial effects before and after the transfer of FLAGCHEM,this thesis finds that the financial effects of the transfer of FLAGCHEM from the NEEQ to the GEM are positive,especially for the improvement of profitability,operating ability and growth ability.Significantly,due to various factors,the company’s solvency has not been improved after the transfer,and the company needs to adjust its capital structure and rationally arrange funds to enhance its own development.Second,when analyzing the non-financial effects of the transfer of FLAGCHEM to the GEM,this thesis finds that the company’s stock price was significantly increased after the transfer of FLAGCHEM to the GEM,and the shareholder’s wealth increased significantly;the company’s stock liquidity has been solved,and the company’s financing problems have been solved;after the company was transferred to the GEM,the number of R&D personnel was increased,the scale of R&D funds was increased,and a large number of invention patents and new physical patents were obtained.The large investment in research and development has improved the company’s innovation ability;after the company was transferred to the GEM,the total number of shareholders increased significantly,and the shareholding ratio of the top 10 shareholders decreased significantly,which solved the problem of excessive concentration of equity before the transfer and improved corporate governance level.Finally,this thesis puts forward relevant suggestions for small and medium-sized enterprises,regulatory agencies and the NEEQ market to promote the sustained and healthy development of NEEQ market participants.For small and medium-sized enterprises,four suggestions are given to improve the innovation ability of enterprises,find multiple financing channels for enterprises,make full preparations before the transfer and strengthen the internal governance level of enterprises.In terms of regulatory agencies,four recommendations are given to strengthen market supervision,increase investor protection,strengthen supervision of information disclosure,and severely punish listed companies that delay supervision fees.Regarding the NEEQ market,four suggestions are given to increase the liquidity of the NEEQ market,increase the threshold for listing on the NEEQ market,increasethe mandatory delisting of NEEQ companies,and implement the transfer board listing system.