The revelation of Nasdaq to China's gem

Wu Yun The U.S. media will be China's "gem" as "Chinese-style Nasdaq" or "Nasdaq-style Chinese stock market."　　But in fact, China's "gem" is more akin to the early Nasdaq. After the advent of Nasdaq in 1971, many innovative small and medium-sized enterprises that were unable to enter the New York Stock Exchange have found a financing facility here. Nasdaq is also known as the "home of small businesses" and "the market for new businesses". After nearly 40 years of development, Nasdaq has become the world's leading stock exchange. At present, there are more than 3,700 companies listed here.　　The Nasdaq index has also become one of the three major stock indexes in New York, and the Office building with its Nasdaq index displays has become the most distinctive landmark in New York's Times Square. To the manipulator that the success of Nasdaq first benefited from strict market regulation, its main purpose is to eliminate market manipulation. Professor Schwartz, a professor of finance at the Baruch College of the City University of New York, said the stock market needs various types of participants, whether they are short-term-focused speculators or investors with a long-term outlook.　　But the market does not allow the operator to exist. ' Market manipulation and speculation are two different kinds of behavior that cannot be confused, ' Mr. Schwartz said.　　In order to avoid and eliminate market manipulation, in addition to industry self-discipline, information disclosure, strict market regulation is essential. Mr. Maccoll, Nasdaq's senior vice president, also believes that Nasdaq has a number of measures to regulate the market. For example, stock market monitoring is the use of sophisticated mathematical methods to monitor transactions in the irregularities. In addition, the Nasdaq also monitors online chat rooms and focuses on the flow of information in the financial world.　　Once a market manipulation is found, it will immediately report to the regulator and take the first action. Enlarge trading Volume "Another important guarantee of stock market success is the establishment of a reasonable market structure that brings together as much market liquidity as possible." Professor Schwartz said. The so-called market structure, is how to organize transactions. Generally speaking, the market structure includes two kinds of order-driven market and dealer market. The former is suitable for the mature, the trading frequency is high, the trading volume big stock market.　　The latter is better suited for emerging markets with limited trading volumes, since it provides liquidity to those stocks that are not large enough to allow the buyer or seller of a stock to find a counterparty in time. After the market structure is determined, it is necessary to continuously increase the trading volume of the stock market, enlarge the market capacity and attract more customers to go public. Mr. Schwartz said that good stock markets are trading volumes and that the more people involved in the market, the better. But increasing market volume is not an easy task. On the Nasdaq development process, Maccoll said Nasdaq is still working to increase market liquidity as much as possible, which is the most important way to avoid market volatility.　　According to statistics, each Nasdaq-listed stock has an average of 30 dealers, while some of the more liquid stocks, such as Intel and Microsoft, reach 75 to 80 dealers. Build partnerships with companies Nasdaq gets today's statusand the rapid development of innovative, growth-oriented enterprises are inseparable. But the Nasdaq is of the view that innovation cannot be confined to the High-tech industry, but to all walks of life.　　According to Maccoll, only 24% of listed companies in Nasdaq are in the technology, information technology and communications industries, 23% in the financial sector, 19% in the health care industry, 16% in the retail sector and 10% (about 250 companies) in traditional industries. And the reason why Nasdaq attracts so many companies is that it can provide quality service for enterprises. Maccoll said that the exchange should not only be a simple place of investment, but also provide services to enterprises and establish partnerships with enterprises. Nasdaq is an important part of the Nasdaq strategy when it begins to establish contacts, understand its business and provide guidance 2-3 years before the company goes public. and opening up to companies is one of the secrets of Nasdaq's success over the past few decades.