Deciphering the New Third Board: The "Nasdaq" that created the Chinese version of the capital myth?

There will be no continuous bidding in the future trading mode of the NEEQ to avoid impacts on the Shenzhen and Shanghai trading markets.
So what is its future trading model? The first is continuous call auctions.
This and call auction are two concepts; the second is agreement transfer; the third is a brokerage market maker.
For example, your business is worth two yuan, and the brokerage must ensure market liquidity, and it will sell out at two yuan.
One selling price, one buying price for one piece of eight, and the intermediate brokerage company earns a difference, which is the brokerage market maker.

Let corporate equity have capital attributes

So how can companies achieve the goal of being even more powerful by going public? This requires a professional capital team to operate.
The fundamental purpose of listing is to make 49% of the company's equity have capital attributes.
Business owners must understand the logic of the formation of this capital operation before they can go to the New Third Board, and then do the capital market.
Only then can the industry earn 10 million a year and financial attributes can earn 10 million a year.

If the Shenzhen and Shanghai stock exchanges do not get out of the trough, nothing can be done on the NEEQ, because it cannot impact the interests of the Shenzhen and Shanghai stock exchanges.
But one thing is clear.
The later the New Third Board, the higher the conditions will be.
Just like last year's loss-making companies can go on, but this year they won't work; this year the government has subsidies, and the government may not subsidize them next year.

What can the NEEQ bring to enterprises?

The structure of China’s capital market is composed of the main board, small and medium board, growth enterprise board, new third board and some local equity trading markets.
The main board is generally on the Shanghai Stock Exchange.
Companies; SME boards and ChiNext boards are smaller in scale compared to companies listed on the main board, and their revenues are generally hundreds of millions or billions; compared to the above boards, the NEEQ will be smaller in terms of enterprise scale and annual revenue.
A little bit, but it's not absolute.

The New Third Board becomes a small and micro business incubator

In recent months, many companies listed on the New Third Board have revenues of over 100 million.
This was very rare in the past on the New Third Board.
Even many companies that were preparing to be listed on the Main Board, ChiNext Board, and Small and Medium-Sized Boards have begun to turn around and do the New Third Board.
Judging from the companies currently listed on the NEEQ, the NEEQ will not necessarily be inferior to the small and medium board and ChiNext in the future.

Why are there many excellent companies preparing to be listed on the New OTC Market? Many entrepreneurs have their own judgments.

Broader equity realization channels

Before a company goes public, the equity in the hands of employees is not tradable, and the non-tradable equity is of little use in the hands.
If you want to realize the equity in your hands, you can only transfer it to colleagues or to major shareholders.
If you want to transfer the equity in the hands of individuals to the public, it is impossible.
But after the company is listed on the stock exchange, this equity will change from non-tradable shares to tradable shares, and employees can put the shares in the stock trading system.
If you want to sell, just click the mouse and hang up the stock.
Someone buys it and trades with the trend, and the stock can be cashed out.
The company's stocks can be publicly traded after listing on the NEEQ.
This is also the reason why many entrepreneurs want to get on the NEEQ.

Conducive to corporate financing

The most fundamental and core purpose of many bosses for listing companies on the NEEQ is to improve their financing capabilities.
At present, in the development process of small and medium-sized enterprises, almost none of them do not face financial pressure.
To give an example, Beijing Xichuang UnionPay Technology Co.
, Ltd.
, after being listed on the NEEQ, conducted two financings.
The first time it raised 5 million yuan, it was aimed at the internal employees, directors, supervisors, and existing shareholders of Xichuang UnionPay.
Get an equity incentive.
Subsequently, Xichuang UnionPay raised another 15 million yuan.
The interval between the two financings was less than a week, which greatly solved the company's financial difficulties.
According to the internal statistics of Centaline Securities, as of now, the average financing amount of enterprises listed on the New Third Board is 40 million yuan.

Getting a bank loan is no longer difficult

The office space of a company listed on the New Third Board in Beijing is rented.
The production is commissioned and there are almost no fixed assets and equipment.
It is difficult for this type of company to go to the bank for loans because there is no collateral.
However, after companies are listed on the New Third Board, they can use equity to pledge loans.
Now, many banks in Zhengzhou have made it clear that they can provide equity pledge loans to companies listed on the New Third Board.
Equity has changed from being immaterial to being able to pledge loans to banks, which also effectively solves some of the problems of corporate financing difficulties.

Improve corporate equity incentives

Beijing is a city with strong personnel mobility and job-hopping.
The bosses in Beijing have a more urgent need to retain talents.
The role of salary and bonuses in retaining talents is not as good as equity.
Many bosses are willing to give employees part of the listing through the New Third Board.
Original shares.
Among the Beijing companies, more than two-thirds of the companies have offered equity incentives to the core technical personnel of the directors, supervisors, and senior executives, especially the companies listed on the New Third Board.
Even companies that have not yet been listed on the NEEQ are still doing so.

Beijing Supcon Zhilian Technology Co.
, Ltd.
is an example.
In 2012, Supcon Zhilian was listed on the New Third Board.
The boss of the company provided equity incentives before listing.
Thirty employees provided equity incentives for twenty people.
These twenty people Hold at least 20,000 shares and hold at most 50,000 shares.
From 2012 to now, how is the effect of this equity incentive? Only one of the twenty stock-incentivized people has lost one, while the other ten people without stock-based incentives have almost changed it.
Although the stock appears to be only 20,000 shares and 50,000 shares, it is amazing to retain talent.

Once an employee holds shares, he will have a sense of ownership, thinking that he is no longer just a worker, but a shareholder of the company.
This sense of ownership is not the result of a year-end bonus giving him 500,000 yuan.

Equity incentives are a no-brainer business for the boss.
Because employees buy shares of the company with their own money, and employees sell them to the secondary market if they sell them to the outside world.
He earns other people’s money and not the boss’s money.
Why not do it?

Establish a corporate brand

Consumers' living conditions are very good now, and they will pay more attention to the brand if they buy a big item.
In the future, the brand advantages of enterprises will become more and more obvious, and the New Third Board will provide enterprises with an opportunity to establish their brands.
After the company is listed, it will become a public company with its own independent stock code.
The media and capital market trading systems across China can see the company’s situation.
Every time a company makes an announcement, investors can see it.
It's a publicity.
Compared with spending money on advertising, the effect of the former is definitely better.
There are now nearly 4,000 companies listed on the New Third Board.
Compared with the millions of companies in the country, listed companies will definitely be more likely to be paid attention to by investors and ordinary people.

Standardize business management

The value of the sense of stability and belonging that a standardized company brings to employees cannot be quantitatively estimated.
Many private companies are unable to retain talents not because of low wages to employees, but because they cannot make employees feel like they belong.
Now many bosses are also aware of the importance of standardizing corporate management.
There is a private enterprise in Xi'an.
The boss is very charming.
Although his company is small, it is very standardized.
The management rewards and punishments of all aspects of the enterprise are rule-based, which also brings many benefits to the enterprise.
It is understood that there are many employees who have worked in the company for more than ten years.

The more standardized the enterprise is, the farther it will go, and the more irregular it will be, the faster it will die.
By listing on the New Third Board, entrepreneurs can also take the opportunity to sort out their companies and establish a more standardized management system.

Going on the new third board must endure loneliness

In the eyes of investors, it is an obstacle that SMEs need to break through to enter the New Third Board.
The expansion of the New Third Board not only broadens the financing channels for SMEs, but also becomes another platform for the capital market and investment and financing fields.

The continuous warming up of the NEEQ has also brought some changes to the capital market and enterprise development environment.
By promoting the entry of true high-tech, innovative, and creative enterprises into the NEEQ, it will provide a true “innovative” reference system for the GEM market.
"Growth" benchmarks, to build it into China's real Nasdaq, rather than the traditional industry "second best" approach to listing.

First of all, from the perspective of the overall environment, the expansion of the NEEQ to the whole country has made the capital market more active, allowing more SMEs to use the NEEQ for multi-channel financing and solving the problem of financing difficulties for high-tech SMEs.

From the perspective of diversified and disorderly off-market venture capital and equity investment, since there is no market mechanism that can enter and exit, VC and PE investments often have elements of luck and the risk of uncertainty is greater.
If a company can successfully IPO, There is no risk, otherwise, it may be locked up and the risk of exit is greater.
After the expansion of the new third board, the withdrawal problem of VC and PE has been solved.
If you are optimistic, you will enter through the standardized NEEQ; if you are not optimistic, you will exit through the transfer of the NEEQ specifications.
This will greatly stimulate their investment enthusiasm and promote the development of high-tech and innovative small and medium-sized enterprises.

"Short, flat, and fast" has become the most direct advantage of companies listing on the NEEQ.
The NEEQ can allow companies to connect to the capital market in a short period of time, without too high costs, and reducing the number of companies that are listed on the main board and the GEM.
Long-term labor pains.

Secondly, the NEEQ is still a value finder, and the value of listed companies will not be buried.
Only the entrepreneurs have a general judgment on how much the company is worth before listing, but it is difficult to get the general approval of banks, investors, and partners.
After listing, this problem was solved.
Needless to say by the entrepreneur, the market will automatically discover the value of the enterprise and give a fair price.

In fact, the concept of the New Third Board coincides with that of Nasdaq, that is, "As long as the principle of integrity is adhered to, it will be a matter of time for any company to be listed on the market.
" On this basis, we will look at the growth potential of a company.
First of all, it must be standardized, and secondly, there will be growth.
This leads to a concept, whether your product or project can bring practical benefits to the society, that is, innovation.
With this concept, accepted by the market at a certain stage of development, your company will naturally have high growth.
, It also has the qualifications to enter the NEEQ market.
But this process is lonely.
It requires entrepreneurs to stick to their own industry directions and innovative ideas to continuously explore.
Before dawn, they must endure loneliness.
Going public is only a starting point for a company to start from scratch, not an end point.

Conclusion: It is undeniable that under the circumstances of the economic downturn, the crazy stock market has given many dying companies the opportunity to regenerate.
The New Third Board has also become a life-saving straw for many small and medium-sized enterprises.
However, the rationality and management after the madness A good company is fundamental.
(Source: Global Coatings Network) (For more information, please log in: Global Coatings Network http:// )