In 2021, the new third board market making transaction presents a new atmosphere. The turnover and volume of market making transactions on the new third board rose to a higher level. The number of actively traded market making stocks increased, and the turnover rate also increased significantly. In the evaluation and selection of market makers, small and medium-sized securities companies such as Kyushu securities, Anxin securities and Kaiyuan securities have gained a lot, and many old strength market makers have declined or even dropped out of the list.
Last year, with the implementation of a series of reform policies of the new third board and the establishment of the Beijing stock exchange, market making transactions increased significantly. In 2021, the turnover of market making transactions on the new third board was 65.102 billion yuan, an increase of 69.48% and 36.42% over 2019 and 2020; In terms of transaction volume, the market making trading volume of the new third board in 2021 was 10.749 billion shares, an increase of 28.72% and 6.32% over 2019 and 2020.
The activity of trading is also reflected in the improvement of turnover rate. Last year, the turnover rate of 10 market making enterprises such as Dongfang carbon, hetianxia, Huahan plastic surgery, Zhuo Shuo Electronics, Lingxin, nakonor, Haiyu biology, Zhongxun Sifang, Yima online and liwang high tech ranked among the best, with the highest Dongfang carbon being 607.75% and the lowest liwang high tech being 199.84%. The average turnover rate of the top 50 stocks is 163.37%, and the annual average turnover rate of these 50 stocks in 2019 and 2020 is 30.34% and 78.17%.
The transaction concentration has also been further improved. In 2021, Huahan plastic surgery, anda technology, Kangle guard, Zhongxun Sifang, Xianlin 3D, Lingxin Co., Ltd., CSCEC information, Hualing Co., Ltd., Dongfang carbon and Huaqiang Fangte ranked among the top ten in terms of turnover, with a total turnover of 33.19 billion yuan, accounting for more than half of the total turnover of market making stocks; The turnover of the top ten in the previous year was 15.314 billion yuan, accounting for 32% of the total turnover of market making stocks.
On the other hand, small and medium-sized securities companies counter attack in market making transactions and become the “leader” of the market. Recently, the national stock transfer company selected the best market maker in 2021. Kyushu securities became the “best market maker of the year” and maintained the title of “excellent liquidity market maker of the year” in the previous two years. It is worth mentioning that Kyushu securities has jumped up rapidly in the market making business of the new third board in recent years. In 2019, Kyushu securities only won the title of “excellent liquidity market maker of the year” in the annual evaluation of market makers on the new third board. In 2020, Kyushu securities ranked second in comprehensive ranking, and won the titles of “excellent market maker of the year” and “excellent liquidity market maker of the year”.
The performance of Anxin securities and open source securities is also commendable. Both of them have become “excellent market makers of the year” in the market making business field of the new third board. In addition, open source securities has made great achievements in the three individual items of “excellent market making scale market maker of the year”, “excellent liquidity providing market maker of the year” and “excellent quotation quality market maker of the year”.
In previous years, Shenwan Hongyuan Group Co.Ltd(000166) the top brokerage with market making advantages only won the award of “annual excellent market making scale market maker”, while Guotai Junan Securities Co.Ltd(601211) who won “annual best market maker”, “annual excellent liquidity providing market maker” and “annual excellent quotation quality market maker” in 2019 fell out of the list.
From the first quarter to the fourth quarter of 2021, the comprehensive ranking of market makers on the new third board of Kyushu securities was the first, the first, the third and the fourth respectively, basically in the first echelon throughout the year. In this regard, Liu Huayang, head of the market making business department of Kyushu securities, said in an interview with reporters that Kyushu securities has provided market making services to more than 300 third board enterprises since it launched market making business in 2015. “Over the past three years, Kyushu securities has continued to be optimistic about the development of the new third board. Investment banking, brokerage, market making and other business lines have increased relevant investment. The company fully supports the development of market making business from top to bottom, and the scale of business investment has increased year by year.”
The main role of market makers is to improve the liquidity of listed enterprises, smooth price fluctuations and value discovery. In terms of quotation trading, Liu Huayang frankly said that Kyushu securities implements the role of “market maker of the new third board”, takes providing liquidity as the core, and attaches importance to internal control and compliance management. Liu Huayang said that with the gradual implementation of the reform policy of the new third board, Kyushu securities is full of expectations for the follow-up development of the new third board market and will continue to cultivate the new third board.
