Being an important part of China’s multi-level capital market，The National Equities Exchange and Quotations System（NEEQ，or the New Third Board）has become the country’s largest securities market based on the number of listed companies since 2015. The NEEQ system has played a comprehensive role in development and transformation，financing，and share transfer of small and micro enterprises in China，and served as an effective and efficiency tool to support the real economy. However，due to the short development period，imperfect micro structure and the related institutional arrangements，The NEEQ system has five challenges to be addressed in the near future，following as its basic function，liquidity problem，market maker mechanism，transferring arrangement to another board，and the standards for appropriated investors respectively. The problems led by the rapid development might be resolved in the new promotion stage of the NEEQ system. The regulatory authorities have five main tasks in the future：1）to strengthen the fundamental function of the system which is to support the small and micro companies and real economy，2）to match the real demand of the companies，3）to establish a sounder liquidity framework to the NEEQ system，4）to build up the existing mechanism，and 5）to enhance the coordination and cooperation among the enterprises，the NEEQ system and the regulators. A comprehensive NEEQ system with clear perspective，well-defined function and effective regulation contributes a lot to the sustainable development of small and micro enterprises and China’s economy.