Research On The Motivation And Performance Of IPO Application At The SSE STAR Market From The NEEQ

2019 is the first year of the supply-side reform of Chinese multi-level capital market.The two most notable events are the start of the pilot registration system for the SSE STAR Market and the comprehensive deepening of the reform of the NEEQ.The NEEQ Market occupies an important position in Chinese multi-level capital market structure,and plays an important role in increasing financing channels for small and medium-sized enterprises and improving stock liquidity.However,since 2017,the NEEQ market has gradually been unable to meet the financing and liquidity needs of listed companies due to its obvious defects in liquidity,financing scale,transaction mechanism,listing cost and transparency of information disclosure.In this context,the SSE STAR Market was born with its "tailor-made" issuance conditions and a transparent,open and market-oriented review system,attracting NEEQ companies that want to move to a higher level of the capital market.At the same time,the NEEQ reform system that promotes the construction of green transfer channels,such as the tiered system,the approval of IPO and the establishment of the Beijing Stock Exchange,has emerged one after another.It can be expected that in the future,with the gradual shaping of the advantages of the SSE STAR Market and the implementation of the direct transfer mechanism,more NEEQ companies will transfer to the SSE STAR Market for listing through different channels.This article takes Western Superconductor,one of the first batch of companies listed on the NEEQ transferred from the NEEQ to the SSE STAR Market and successfully raised 663 million yuan through public offerings,as an example to study the process,motivation and performance of its transfer.Small and medium-sized schools provide lessons and references.Based on the literature review,policy status,related concepts and theories,this thesis mainly studies three aspects of the case company’s transfer to the SSE STAR Market.Compliance conditions during the transfer process;secondly,combined with the market as a whole and individual cases,analyze the external and internal motivations of the case company’s transfer;thirdly,through the longitudinal time analysis method,the short-term event research method,and the long-term financial indicator evaluation method,Horizontal industry research method,to evaluate the performance of the case company transfer,mainly involving financing effect analysis,market performance analysis and financial performance analysis.This thesis draws the following conclusions by studying the case of Western Superconductor’s listing on the SSE STAR Market.First,the NEEQ market has been unable to meet the development needs of small and medium-sized enterprises in the growing stage due to the low market activity,weak financing function,and declining liquidity in recent years.Enterprises have the motivation to transfer to the new board;secondly,only NEEQ companies that meet certain conditions can successfully transfer to the STAR Market;thirdly,transferring to the STAR Market can improve financing efficiency and open up financing channels for NEEQ companies;third,transfer to the STAR Market Listing on the STAR Market can improve the liquidity of stocks in the secondary market and bring wealth effects to shareholders;fourth,listing on the STAR Market can bring positive financial performance in many aspects to companies on the NEEQ.