Research On The Conversion Board And Its Effect Of New Otc Market Enterprises

Multi-level capital market structure can meet the financing needs of enterprises with different scales and different cycles,which makes the capital market more stable and efficient.In recent years,the construction of multi-level capital market system in our country has made great progress,but there are still some deficiencies in the mechanism of the transfer board connecting different plates,which has developed more mature in some countries and regions.The New OTC Market,which has experienced two expansions,ushered in an important period of all-round development in 2014 and2015.At present,it has become an important platform for the development of small and medium-sized enterprises,reflecting an important undertaking role in the entire capital structure.Also is the entry point of the turning board mechanism's construction.During the period from 2007 to 2019,many New OTC Market's enterprises have realized their transition from the New OTC Market to the Growth Enterprise Board or the Main Board.However,because the turning board mechanism of it is not perfect,all the case enterprises adopt the complex procedure of IPO,so the process of the conversion is not smooth.A large number of the New OTC Market's enterprises with strong demand to turning board are eager for the introduce of relevant policies.This paper makes a case study on Keshun Waterproof Technology Co.,Ltd,which successfully entered into the Growth Enterprise Board on January 25,2018.Firstly,the paper introduces the process of it's turning board,including the motivation of its turning board and the conditions of its conformance with the board.Then it analyzes the time cost and capital cost of the turning board.Then this paper analyzes the external effects from the market reaction and brand influence,and analyzes the financial index and management ability of the enterprise before and after the conversion through the comparative analysis to judge the internal effects of the turning board.Finally,through the summary of the case,the article encourages the New OTC Market's enterprises to standardize their operation and actively list on the market,and put forward some relevant improvement of the turning board mechanism of the New OTC Market.