Liquidity risk This is the most important risk in the New Third Board market. The turnover of the whole market is only equivalent to an ordinary main board enterprise, which is abnormal for the capital scale of the New Third Board. In the case that the trading system is not perfect and the transfer system has not yet been introduced, the bought shares of the New Third Board can only be transferred through agreement or sold after the IPO of the enterprise. However, it is unlikely that the basic layer and innovation layer other than the selected layer will be listed on the board. If the market maker system is introduced, the liquidity will be improved to some extent, but it is still quite different from the secondary market.
In the New Third Board before the expansion of stock selection risk, most of the listed companies were excellent, and nearly half of them basically met the requirements for listing on the Growth Enterprise Market, so the investment risk was relatively small. However, after the expansion, the listing threshold is lowered, and the quality of companies is mixed. Most companies are difficult to go public in the future, and many of them may even close down at any time. For investors who have no ability to distinguish, the risk is relatively large. Moreover, the shares of some high-quality enterprises have usually been contracted by large brokers or even held for a long time, which leads to many small institutions and individual investors unable to obtain high-quality targets in the market, and the investment income of choosing sub-optimal companies is low and the risks are great.
Valuation Risk The New Third Board does not require the listed companies to have a profit level. Except for a few leading companies in sub-sectors, most of the entrepreneurial or conservative companies have poor operating level and poor financing ability, and their stocks are illiquid and have no investment value. Among more than 2, enterprises, few can go to the top tier or turn to the main board. Most companies have the risk of a decline in net profit, and some stocks can fall to 1% of the original price or even withdraw from the market. In addition, the financial statements can also be whitewashed, and the published profits are almost meaningless to ordinary investors. Most companies can't achieve long-term and stable dividends, let alone valuation.
Trading risk There is no limit on the price of New Third Board stocks. Judging from the historical transaction data, the prices of some stocks fluctuate very sharply. Because the agreement transfer of the New Third Board often leads to a huge price gap in the same stock, which weakens the price discovery function of the New Third Board, and the price of the agreement transfer does not reflect the truth of the listed company. In order to make a profit, some private equity fund companies will even buy a large number of basic or innovative stocks with poor liquidity at low prices, and then blow the tickets to the retail investors who don't understand.
The conditions for supervising the listing of venture enterprises are only trial. Many enterprises with unqualified quality are listed on the New Third Board through backdoor and other means, and it takes time and effort for institutions to do due diligence, so they may give up their investment. Listing has not played a very good screening effect, and many major shareholders of enterprises regard the New Third Board as their own cash paradise. If the listing review system is combined with the hierarchical system in the future, and enterprises are rated at the same time as listing, supervision can be effectively strengthened and investors' risks can be reduced. The above are the five main risks of investing in the New Third Board, and I hope it can help you.