Study On The Financing And Development Of The Regional Equity Trading Center

Regional Equity Trading Centers(or called fourth board)constructed since 2011 has been an essential part of the Chinese multiple-level capital market,helping small and micro businesses launch financing channels,stimulating public innovation and supporting weak parts in substantial economy.This paper is aimed at exploring compatible development path for China regional equity market.This paper introduces the development of the OTC market of U.S.and Japan as well as the current situation of regional equity market in China.Based on analysis above,this paper finds that the current development problems of Chinese regional equity market can be concluded into three aspects: ‘whom to serve?',‘how to serve' and ‘how to improve'.‘how to serve' is closely linked to financing problem.Then this paper pays attention to the problem financing efficiency and makes further regression analysis on this question.This paper chooses the small and micro businesses listed in Shanghai,Tianjing,Shandong and Jiangsu Equity Trading Centers as study object based on the financial data form 2013 to 2016 as well as DEA-Tobit model.The result shows that although the financing efficiency of cmpanies has improved in recent years,the overall financing efficiency level is still low,far away from financing-efficient level.Furthermore,most companies oven both low technological financing efficiency and high scale financing efficiency which indicates on one hand,companies are not able to take full use of financial funds,but on the other hand most companies have obtained enough development financing.Next,we use DEA projection analysis and Tobit regression model to search for factors related to financing efficiency.Form the results we can see that those businesses in low financial efficiency suffer from some inner factors such as finance deficiency,unreasonable capital structure,high financial cost,low profitability and so on.Also some external factors such as the regional economics,government preferential policies as well as financial services provided by the Equity Trading Centers can also make huge effects on the financial efficiency of companies.Above all,we should make development of the financing function of the Equity Trading Centers and pay attention to improving the fund operating abilities of the businesses list in centers.Moreover,the government should put preferential policies into practice to improve the financial efficiency in the whole Equity Trading Center market.In last part,this paper puts forward several policy advices for above three problems...