Research On The Case Of Three Stars New Materials From New OTC Market Turn Board To Main Board Market

New OTC Market has become an important part of the multi-level construction of China's capital market.New OTC Market is favored by small and medium enterprises with the advantages of low threshold,and the establishment of the capital market has indeed solved the financing problems of some small and medium-sized enterprises.However,because New OTC Market is in the initial stage of development,there are some problems such as insufficient liquidity and low valuation,which can not meet the development needs of some listed companies.Therefore,in order to get enough room for development,such listed company began to seek to enter a higher level capital market,and its demand for turn board was stronger and stronger.By the end of 2017,a total of 37 listed companies had been turned from New OTC Market to other capital markets,and Zhejiang Three Stars New Materials Co.?Ltd was one of them.In March 6,2017,Three Stars New Materials went public on the Main Board Market and issued shares to the public.The company is the first to successfully turn from New OTC Market to the Main Board Market.Taking the company as the research object,Analysis of the company's turning board process,Summarizing the experience of successful turning board is useful for other companies with turning board demand.From the two aspects of financing demand and brand building,this paper analyzes the motivation of Three Stars New Materials.From continuing operation,corporate governance and financial indicators,we analyze Three Stars New Materials to meet the turn board conditions.From the three aspects of capital cost,time cost and opportunity cost,it is concluded that the cost of Three Stars New Materials turn board is relatively high.Compared with some items in the financial statements before and after the turn of Three Stars New Materials turn board,it is concluded that Three Stars New Materials turn board brings benefits to the company.By summarizing the results of the above analysis,it is found that the main reason for the success of Three Stars New Materials turn board is to pay attention to corporate governance and to pay more attention to the stable development performance.At the same time,Three Stars New Materials turn board has encountered the problems of high cost of rotating plate,single path of choice of rotating plate and IPO audit which does not reflect the uniqueness of Three Stars New Materials as the listed company.In order to solve the above problems,this paper believes that New OTC Market needs to start from two aspects of distinguishing public listing,issuing and optimizing IPO audit procedure,establishing efficient and convenient turn board to meet the demand of high quality companies,and finally realizing the optimal allocation of capital market resources.