Research On The Legal System Of Supervision Over GEM Super-Raised

On October 30, 2009, the first batch of 28 companies listing on GEM (Growth Enterprise Market) marked the official opening of GEM. There is no doubt that the introduction of the GEM is of great significance on the development of China's securities market, and it can be described as the "booster" and "incubator" for the high-tech, high-growth innovative companies. But as the GEM board has opened, the actual situation is not satisfactory, high issue price, high price-earnings ratio and a serious phenomenon of excess proceeds is the prominent performance. At the same time, the super-raised GEM companies irrationally use or misuse of super-raised funds, although the Shenzhen Stock Exchange introduced the "Listed companies standardize operational guidelines" and " No.1 memorandum on disclosure of operational information of GEM " on the business board over the use of funds raised to a requirement. GEM super-raised exposing the system of problems, but also exposed the serious GEM speculation. Therefore, we should improve the regulatory system over the GEM super-raised.This paper is divided into five parts, a total of about four thousand words. The first part of this paper is about the basic theory of GEM super-raised. This part has defined the concept and the characteristics of GEM super-raised, with analyzing the reasons for it, and pointed out IPO market has not been thorough reformed of its root.The second part describes the need of GEM super-raised for supervision. On one hand, GEM super-raised has its rationality of the existence, but on the other hand, it will lead to "inefficient use of capital market resources, resulting in a waste to the enterprise market risk, and damaging the interests of investors". Besides, the economic and legal theory from the perspective of regulation on GEM super-raised is also analyzed.The third part of paper describes the current specification on GEM super-raised and points out the shortcomings of legal regulation and supervision, such as the idea of strong sense of control, lack of relevant legal norms and so on.The fourth part states foreign regulations on GEM super-raised for reference. Part five proposes suggestion on the supervision of the GEM over raised. On the one hand, institutional framework that is market-oriented philosophy should be adopted, on the other hand, it is of great importance for the regulatory regime over GEM super-raised to introduce Market-oriented concept and implement market-oriented reform of new shares from the IPO Issuance System, to strengthen the supervision on "inquiry" and to complete information disclosure system over the GEM super-raised.