The best channel for venture capital withdrawal

The successful venture capital withdrawal mechanism is marked by the goal of realizing the expected capital profit of venture capital, and there are usually three ways to withdraw: one is public listing, the other is the transfer of shares, and the third is the liquidation of the company. Foreign practice has proved that IPO is the best way to realize the exit of venture capital. However, China's main board (a-share) market, although in the overall economic reform and investment and financing reform has played a huge role, but for various reasons, it is difficult for venture capital to provide a smooth IPO channel, so that the motherboard market has become an integral part of our venture capital system still have many difficulties. First of all, the main service in the reform of state-owned enterprises and expand the financing policy background, to non-state-oriented High-tech enterprises are difficult to enter the main board market. Second, the motherboard market threshold is relatively high. According to the relevant provisions, the listed company must be 1, the total amount of the company's capital is not less than 50 million yuan, 2, the number of individuals holding the nominal value of RMB 1000 yuan or more than 1000 persons, (the total value of the individual holdings of shares not less than 10 million yuan); More than 25% of the total shares of the company issued to the social company, the total stock of the company exceeds RMB 400 million yuan, its share of the public offering to the public is more than 15%; 4, three years continuous earnings record. For those who have just entered the expansion phase or stable mature stage of the small and medium-sized High-tech enterprises have insurmountable obstacles. Third, in the existing system framework, the main board market of corporate shares, state-owned shares can not be circulated and transactions, which with the venture capital through the transfer of equity, the withdrawal of investment to achieve returns of the investment way. Finally, under the strict index management of the motherboard market, even if there is a chance to enter the motherboard market, it cannot meet the financing requirements of many High-tech enterprises in quantity. Based on these characteristics of China's current motherboard market, combined with foreign experience, it is necessary for China to set up a second board stock market, to provide "export" for venture capital, to improve the withdrawing mechanism of venture capital, to promote the benign cycle of venture capital, and to improve the liquidity and efficiency of risk capitals. Problems and risks in establishing the second board market the main board of our country's securities market the current market speculation atmosphere is heavier, the risk is big, the listed company's quality is not high, the security management, the supervision system still needs to consummate, therefore now establishes the second board market also to face more risk. First, the risk of listed companies to bring the second board market is mainly aimed at small and medium-sized enterprises and High-tech enterprises, while in China, the main board market listed companies themselves on the scale of small, equity scale of only tens of millions of, total assets under billion companies abound, in this case, If the main board market to further reduce the size of listed companies, then second market companies to assume the risk of a worse, investors face greater risk. Second, the low listing standards will increase the investment risk of the vast majority of investors from the implementation of the second board market in foreign countries, because the market positioning in the high risk of SMEs, High-tech enterprises, these enterprises are weak, its operating performance, scale and so often do not meet the motherboard marketListing standards, therefore, the second board market general listing standards are lower. And from China's main board market for nearly 10 years of operation, the public disclosure of information has a greater moisture, the company listed in the general "excessive packaging" phenomenon, in this case, lower the listing standards will trigger greater risk, damage the interests of the vast number of investors. Third, it is possible to aggravate the speculative atmosphere of China's securities market at present, China's securities market is still a more speculative market, the main reason for the large amount of hot money to patronize the market is the speculative profit of the securities, the fluctuation of the stock market is relatively large, if the blind establishment of a second board market with greater investment risk may increase the financial risk, Further expand the current speculative atmosphere in the securities market. The lack of institutional investors in the United States and Hong Kong the second board market is mainly targeted at institutional investors, and in foreign securities market is the fund and other institutions as the main market investors, the ability to take risks. The second board market listed companies bankruptcy or failure of more, China's small and medium-sized retail investors are afraid to bear, and even may cause social unrest factors. Five is likely to have adverse impact on the motherboard market to establish a second board market may have adverse impact on the motherboard market. First of all, the establishment of the second board market will lead to the main board market capital diversion, not conducive to the motherboard market as a state-owned enterprise financing site of the completion of the task; Secondly, the second board with greater risk, if there is turbulence, it is likely to cause a ripple effect in the main board market, Six, the regulatory mechanism does not yet have the condition of establishing the second board market the main body of the second board market is High-tech enterprises and small and medium-sized enterprises (mainly private enterprises). Small and medium-sized enterprises, especially private enterprises have many problems inside, it is difficult to form an effective internal monitoring and auditing system. At present, China's securities supervision mechanism is not sound, the system is not sound enough, and the second board market risk is higher than the main board market, effective external supervision is essential. Therefore, in the establishment of second market, we must draw on the experience of countries to design a perfect second market operation system, and its strict supervision. Choice of the second board market mode in China the existing second board market can be divided into two types: one is the American Nasdaq model, that is, the independent mode. Second, the motherboard attached mode. According to the present situation of our country, China's second board market should choose the model attached to the main board market, this is because our existing stock exchange is a highly modernized electronic transaction and clearing system, fully able to assume the entire second board market operation tasks, the adoption of independent mode will cause duplication of investment, waste of resources. China's securities market in the initial stage of development, the market outside the small size, and lack of norms, there is no one can support a considerable size of the Nasdaq market base, therefore, the establishment of an independent second market may be too small, leading to a city without market, inefficient. China's venture capital is still in the embryonic start stage, although many companies and enterprises urgently need to be listed through second market,But its size and quantity still cannot support an independent second market. Therefore, attached to the current motherboard market, the use of the main board market resources for development, although this model for the development of the second market has some constraints, but still can meet the initial stage of China's venture capital industry needs. In the future, with the development of venture capital, we can further reform and perfect the second board market. According to the August 20, 1999 "Decision of the State Council of the Central Committee on strengthening technological innovation to realize industrialization", the motherboard attached market is likely to be launched in Shanghai and Shenzhen exchanges, but the time is certainly in Hong Kong second market after the launch, so the motherboard attached mode of operation may be possible until 21st century.