She Geng: How to establish multi-level capital market

She Geng, director of the SFC's market supervision department, said the OTC open market should be unified nationally, regulated by the SFC, and the interbank market is "indirect financing" and "Caixin Net" (trainee reporter Zheng Fei) The OTC market should also be stratified, which can be divided into "open market" and "Non-public market". The open market should be a unified national market and should be incorporated into the regulatory system of the SFC, and the non-public market can be explored by various places.　　This is the China Securities Regulatory Commission, director of market supervision She Geng "personal vision." Recently, She Geng in a university lecture, on how to build a multi-level capital market, entitled "China's capital market development Thinking Choice" report. He said that the open OTC market is mainly functional positioning in the equity of registration, trusteeship, dividends, dividend, a pair of agreement transfer.　　He also believes that the open market can become a unified national market, only because of the current communication and network means can be completely unified market, non-public markets can be regional, from scattered around the attempt. She Geng first briefly reviewed the various stages of China's capital market development in the past 20 years. He believes that from 1990 to 1997 is China's capital market development of the initial stage of exploration, this stage mainly in the exploration of various forms, the market is extremely irregular; 1998 to 2005 is the standard period of the capital market, the market's concern for the risk significantly increased, the government to increase market strength,　　From the legislation and the system to evade the large shareholder occupies the listed company funds and so on, since 2005, is the capital market key development period, the Chinese capital market already "resembles" the multi-level market structure.　　But he said, the multi-level market from "shape" to "likeness", the key lies in the construction of the internal system, focusing on the bond market and the construction of OTC markets. She Geng pointed out that the development of China's bond market lags behind, according to the large-caliber statistics of direct financing, the proportion of US bond financing and equity financing is 2:1, China is 1:1. The main problems of the Chinese bond market include: the government bonds still only assume a balanced budget function, not open market operation tools, so far has not formed the benchmark yield curve; The corporate bond market is not perfect, the bond market is divided, the exchange bond market and the interbank market are not getting through. She Geng that the inter-bank trading market, the receiver is still a bank, banks to risk management requirements high, can not develop more credit grade bonds.　　Bond financing in the interbank market, "called direct financing, is actually indirect financing". At the same time, he believes that through the two markets, the core is to cultivate and improve the commercial credit base, and gradually form a multiple credit rating of the unified bond market.　　This will enable the bond market to gradually "move down", so that the role of the bond market to benefit SMEs.　　For the OTC market, She Geng reviewed the development of China's OTC market and the exploration of some local nature, such as the confusion caused by the property market of Henan Small and medium-sized enterprises called "Zhongyuan Nasdaq". She Geng pointed out that the primary function of OTC market can not be located in the "financing", but should be "to provide the flow of equity channels" and "Price discovery." Through the development of over-the-counter markets,For those companies that cannot enter the exchange, it provides a platform for the circulation of equity, provides an exit channel for venture capital, and, through the price discovery of OTC markets, enhances the financial information "credibility" of these companies and provides an assessment basis for other forms of financing such as equity mortgage loans for enterprises. He said that the final function of the OTC market should be "to change the financing environment of enterprises", and finally to achieve the distribution and listing separation, enterprises in the completion of stock issuance can choose where to go listing, to achieve multi-level, diversified arrangements.