The Research On The Developing Prospect Of The Growth Enterprise Market In China

Growth enterprise market, also named The second market, is a new way of financing in the financial market. It is a capital market that is different with The mainboard market in the aspects such as serving object, standard of coming into the market, dealing system, etc.The main serving object in the Growth enterprise market is the high-tech enterprise of small scaled or middle scale enterprises. This market also has the general function of capital market such as continuously financing, recommendation and optimizing, so it can provide good market environment for the development of the high-tech enterprises. The rapid growth of the high-tech enterprises need large amount of capital, the continuously financing function of the stock market can improve the condition of providing capital of the high-tech enterprises. The advertising effect through coming into the market can help the high-tech enterprises exploit the market. The stock market has the selecting function that can wash out those enterprises without developing foreground. The development of the venture capital has a kind of relationship with the operation of the Growth enterprise: Venture capital has the growth enterprise market as a retreating window, so a flourishing stock market can greatly stimulate the development of the venture capital, while the development of the venture capital can breed a lot of enterprises with rapid growth, when these enterprises come into the market, they also activate the stock market; On the contrary, the shrink of the Growth enterprise market can restrict the development of the venture capital. The deficiency development of the venture capital can make the Growth enterprise market lose energy.As a developing country, China face the challenge of the knowledge economy. We have to establish the venture capital investment system as soon as possible to accelerate the transform of the high-tech production and thedevelopment of the high-tech industry. China developed venture capital investment since 1980's,but the venture capital investment institution operated difficultly for many years, the effect is not satisfying, a basic reason is the absence of the capital market which is fit for the venture capital. The Growth enterprise market has the in substitute function to the venture capital and the high-tech enterprise, so we have to solve the problem of absence of the Growth enterprise market. But we still have some difficulty in establishing the Growth enterprise market at this time; we need some preparation in the industry, personnel and environment (including the law environment, the social environment, the policy environment). For example, our social environment has no common law which everyone obey such as honesty and keeping faith, our stock markets have little institutional investors, the investment ideas of most investors are not mature. The specialty of the Growth enterprise market advance a new challenge to the supervising level of the supervise department for the stock market.How about the prospect of the future Growth enterprise market? It lies on the integrate operation of many factors. As a capital market which sustain the middle-scaled and small-scaled high-tech enterprises to establish and develop, The Growth enterprise market is a free capital market in nature; if we have no free capital spirit, no free enterprise spirit, the growth enterprise will not stand well. So this brand-new market should operate on the market principle from the very beginning of the establishment, obey the international routine. We should not establish it according to the rule of the mainboard, which will distort it .If it operate on this way, it due to be unsuccessful. On this market, the quality of the enterprise which come into the market, the quantity of the institutional investors in the market, the supervising level of the supervise department as well as the whole system of coming into the market and retreatment from the market will allhave grave effect on the status of its operation and development. To keep away...