What is the main board, second board and third board market?

Hello, the first board market: also known as the main board market, refers to the traditional securities market (usually the stock market) and is the main place for securities issuance, listing and trading in a country or region. The main board market came into being before the Growth Enterprise Market (GEM), which is an important part of multi-level market with both differences and connections. Compared with the Growth Enterprise Market, the main board market is the most important part of the capital market, which can reflect the economic development to a great extent and is known as the "barometer". The main board market has higher requirements for the issuer's operating period, share capital scale, profitability and minimum market value. Most listed companies are large and mature enterprises with large capital scale and stable profitability.

Second board market: also known as "second board", is a concept corresponding to the first board market, which is mainly established for small and medium-sized growth emerging companies, and its listing requirements are generally wider than "first board". Compared with the main board market, the second board market has the characteristics of foresight, high risk, strict regulatory requirements and obvious high-tech industry orientation. Most mature securities markets and emerging markets in the world have such stock markets. The world's most famous second-board market is the NASDAQ market in the United States, which is not available in Chinese mainland at present.

Its clear positioning is to provide financing services for high-growth small and medium-sized enterprises and high-tech enterprises. It is the direct financing channel and the capital market for SMEs. Compared with the main board market, the enterprise standards and listing conditions of the second board market are relatively low, and it is easier for small and medium-sized enterprises to go public to raise funds needed for development. The establishment of the second board market can directly promote the development of small and medium-sized high-tech enterprises.

Furthermore, the second board market is a unique capital market different from the main board market and has its own characteristics. Its function is mainly manifested in two aspects: first, it plays a role in the venture capital mechanism, that is, it plays the role of the exit window of venture capital; Second, listing, as an inherent function of the capital market, includes the functions of optimizing resource allocation and promoting industrial upgrading. For enterprises, in addition to financing, listing has the functions of raising awareness, sharing investment risks and standardizing operations. Establishing the second-board market is an important part of perfecting the venture capital system and providing direct financing services for small and medium-sized high-tech enterprises.

Third-board market: namely, the agency share transfer business refers to the special transfer service provided by securities companies with the qualification of non-listed companies to handle share transfer business with the approval of China Securities Association, and the service target is small and medium-sized high-tech enterprises. Its role: to play the intermediary role of securities companies, make full use of the existing securities company network system of the agency share transfer system, facilitate investors' share transfer, provide investors with efficient and standardized registration and settlement services, ensure the transfer order, and rely on the technical service system of the agency share transfer system to avoid system duplication, reduce market operation costs and risks, and reduce the cost burden of market participants. The name of the third board market is commonly known in the industry, and the official name is "Agency Share Transfer System", which was officially opened on July 1 day. As a part of China's multi-level securities market system, the third board market provides a place for listed companies to continue to circulate after delisting, and on the other hand, it solves the circulation problem of corporate shares of several companies left over from the history of the original STAQ and NET systems.