Proceedings of the 2018 2nd International Conference on Management, Education and Social Science (ICMESS 2018)

The Influence of Market Maker System on the New Third Board Market of China

Authors
Qianqian Ai, Zhenni Fang
Corresponding author
Qianqian Ai
Keywords
Market maker system; Transaction cost; Price discovery; Liquidity
Abstract
As a significant component of the multi-level capital market in China, the New Third Board Market plays an important role in promoting the financing of small and medium-sized enterprises. For the enhancement of the liquidity of the New Third Board Market, the market maker system was formally introduced in 2014. In this paper, the channels of action of the market maker system were analyzed, and the market maker system is believed to be able to effectively improve the market's liquidity by reducing transaction costs, price discovery and competitive market makers. This paper also puts forward that positive measures should be taken from the following three aspects: market makers, investors and regulators.
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