Core Viewpoint - The OTC market serves as a vital platform for small and medium-sized enterprises (SMEs) to access financing and transition to larger exchanges like NASDAQ and NYSE, acting as a "fast track" for companies aiming for higher market visibility and capital access [2]. PART.1: Current Status of OTC Markets - Since 2007, OTC Markets Group has restructured the OTC market into four tiers: OTCQX, OTCQB, OTC ID, and Pink Limited, enhancing the organization and transparency of the market [4]. PART.2: Financing Methods for Chinese Enterprises in the OTC Market - OTC market listings can facilitate financing, similar to China's New Third Board, although the extent of financing depends on the enterprise's value [10]. - Pre-listing equity financing is crucial for companies before they list on the OTC market, with underwriters playing a key role in developing effective equity plans [11]. - Companies listed in the OTC ID and Pink markets can raise funds through the issuance of new shares, leveraging their OTC status to attract domestic investors [12]. - Effective market capitalization management can enhance investor confidence and drive stock price appreciation, facilitating further fundraising opportunities [13]. PART.3: Trading Mechanisms in the OTC Market - The trading process in the OTC market is similar to that of U.S. stock exchanges, with prices reflecting market supply and demand [15]. - The OTC market operates on a dealer network system, where market makers provide liquidity by continuously buying and selling securities [16]. - Transactions are conducted through brokers, allowing for negotiation between parties to achieve optimal trading outcomes [17]. PART.4: Retail Shareholders and OTC Shell Companies - Domestic retail shareholders can register as shareholders of OTC shell companies, as there is no limit on the number of shareholders, allowing for free trading in the secondary market [18].