Liquidity and the Financing Efficiency of Enterprises Listed on the National Equities Exchange and Quotations (NEEQ) in China

In China's National Equities Exchange and Quotations (NEEQ), stock trading and transferring adopt market maker system. This paper mainly studies the market liquidity and corporate financing efficiency under the market maker system. The article mainly focuses on the development of NEEQ, and analyzes the liquidity status of NEEQ and the financing efficiency of the listed companies in NEEQ. The study found that from 2012 to 2017, with the continuous growth of the liquidity of the NEEQ, the financing efficiency of listed companies did not increase significantly, and the financial situation of listed companies had only been better during the listed year or the year before. This shows that compared with the improvement of corporate financing efficiencies brought about by enterprises, which strengthen their internal management, improve the efficiency of capital utilization, and improve business capabilities, the impact of market promotion on the development of enterprises is much smaller. In order to improve corporate financing efficiency, it is proposed to improve the supervision on the NEEQ market, optimize the internal organizational structure, improve the efficiency of capital use, enrich the types of loans, and reduce the loan interest rate for high-quality SMEs. Keywords—National Equities Exchange and Quotations (NEEQ); liquidity; SMEs; financing efficiency