Research On The Motivation And Effect Of The New Third Board Enterprises Turning To Star Market

The New Third Board market is an important component of China’s multi-level capital market,and since its expansion in December 2013,the number of listed enterprises has grown rapidly,effectively promoting the rapid development of small and medium-sized enterprises.However,in the process of development,the New Third Board has been affected by multiple factors such as market size,structure and demand,which have reduced investor enthusiasm,decreased financing volume,sustained low turnover and inactive trading.At the same time,with the continuous growth and expansion of high-quality listed companies,the various institutional arrangements for financing and trading in the New Third Board market can hardly meet their development needs.Many New Third Board companies have developed the willingness to transfer to the board and,according to the actual situation,choose to transfer to a capital market suitable for them for financing.Taking Jalon as a research case,this thesis firstly analyzes the motivation of Jalon’s transfer from the New Third Board market to the Star Market from both external and internal aspects.The external motivations are: the lack of liquidity in the New Third Board market and the decline of financing scale cannot meet the capital demand;the opportunities and challenges formed by the national energy-saving and emission reduction policies on the molecular sieve industry,which The national energy conservation and emission reduction policy has created opportunities and challenges for the molecular sieve industry,which has increased the demand for capital.Internal motivations include: the transfer of the board to enhance the valuation of shareholders’ wealth;rising raw material prices,energy and power purchases and production lines to expand production capacity and product development,resulting in increased capital needs;in order to better improve the governance structure,improve governance efficiency.Secondly,the cost of transferring to the board: from the time cost,it takes a long time to transfer to the board in the past,Since the reform of the new Third Board conversion system,the audit of the CSRC has been eliminated,it saves a lot of time;from the capital cost,it is necessary to pay a lot of money to transfer to the board.Again,the effects brought by the transfer of the board are analyzed,and it is concluded that the transfer of Jalon to the board brings positive financial effects,improves the market valuation and stock liquidity of the company,enhances the innovation and financing ability of the company.Finally,for the aspect of New Third Board market,we propose to encourage high-quality enterprises to actively transfer to the board to get rid of their difficulties,improve the listing standard to improve the delisting mechanism,establish a green channel for New Third Board to transfer to the Star Market,lower the standard of New Third Board investors,and increase the supervision of New Third Board market,which we hope that enterprises who are in a position to transfer to the board can refer to and learn from.