The New Third Board Needs To Establish Hierarchical Supervision

OTC market is an important part of China's multi-level capital market. We have been exploring the establishment of OTC market with Chinese characteristics since the Commission share transfer system was launched in July 2001. On January 16, 2013, the national share transfer system for small and medium-sized enterprises was unveiled in Beijing, marking a new step for the unified OTC market in China. It has basically formed an OTC capital market structure of three levels, namely, national small and medium-sized enterprise share transfer system, regional equity trading market and local equity trading market.

At present, there are three equity transfer markets in China, namely, equity transfer market and local equity market in Tianjin. Among them, the national OTC market is developed from the "old three board" and "new three board". From the current situation, due to the lack of top-level design and macro planning, the OTC market, represented by the new third board, has not been clearly positioned so far, leaving hidden dangers for future development.

At present, the old third board uses the centralized bidding matching transaction mechanism, the new third board uses the entrusted quotation and matching transaction mechanism, and the day exchange of the other large off market market market adopts a more advanced hybrid trading system with two-way quotation of market makers as the main factor, combined with call auction and negotiated pricing.

Several major domestic enterprises OTC market The disunity of trading mode can easily lead to the price difference of the same type and scale of enterprise securities in different markets. It's not just a violation“ Same share and same right The principle of "the same share with the same price" will also be manipulated by speculators, causing market chaos and causing infringement damage to market participants.

Most of the financing subjects in the OTC market in China have the characteristics of small scale, light assets, high risk and rapid growth, and the degree of information asymmetry is more serious. Therefore, in terms of assisting the company in financing and protecting the rights and interests of investors, we need to be rigorous system To standardize. For example, reasonable information disclosure is very important for its listing financing and investor protection. However, after all, the small and medium-sized enterprises in the OTC market cannot be compared with the listed companies in the main board market. Compared with the exchange market, the information disclosure requirements of the OTC market, especially the low-level OTC market, are relatively low. Therefore, more practical considerations need to be incorporated into the system design.

The new third board adopts the agreement transfer transaction and market maker system which is different from the main board trading system. However, with the popularity of the new third board, many problems have arisen. The trading mode adopted by the new third board will improve the liquidity of funds, but it is also easy to be artificially manipulated. The characteristics of agreement transfer easily lead to market manipulation and insider trading. As the new third board does not set the limit range as the main board market, once the stock price is artificially manipulated, it may cause great fluctuations. In addition, insider trading in the traditional exchange market also occurs in the new third board market, and the phenomenon of lax disclosure of information by enterprises often occurs.