Research On Law Against Risk Of The Growth Enterprise Market

The establishment of the growth enterprise market is a system innovation in the development history of the securities market. The growth enterprise market, as a bran-new investable species and market, which supports thriving medium and small enterprises and industrialization of high-technology, contains huge risks at the time of bringing high return for investors. The high risks of the growth enterprise market mainly come from management, publicly-holding companies, investors and so on. The foreign mature growth enterprise market has already established a full range of rules of law to guard against and dissolve the risks, and also established a consummate system of supervision, a strict system of releasing information, sponsors and market makers, a perfect inner managerial structure in the corporation body and a investing system mainly consisting of organizational investors.By contrast, the securities market of the our country started late, so some big defectives still exist in the legal system of risks prevention. On May 17 in 2004, the China Securities Regulatory Commission formally approved that medium and small enterprise could issue securities at Shenzhen Securities House, and publicized Implementation Project on Setting up Securities Exchange Operation of Medium and Small Enterprises at Shenzhen Securities House. In this context, the thesis explores how to keep away and take precautions against the risks of growth enterprise market to make it develop healthily, steadily, and orderly. The main contents including is as follows:1.Because the small scale, the whole circulation of stock equity, and lower threshold of going public, the growth enterprise market is a high-risk stock market.The thesis begins with the analysis of the causes induced the market risks, then generalizes the exclusive characteristics of the market, and enumerates its types.2. The thesis carries out a comparative studies on constitution modes, the circulation modes and the supervision systems of all countries' growth enterprise market, then stresses the American NASDAQ market and growth enterprise market ofh.k.3. Combining lessons from the foreign successful and unsuccessful experience with the characteristics of our country's securities market, several pieces of recommendation have been proposed on how to eventually establish the legal system, which adapts to our country, against growth enterprise market risks. The first, from the standpoint of the companies, a healthy and general system of information release and independent directors should be established; the mechanism of withdrawing from the market should be improved. The second, from the standpoint of the investors, their behaviors should be regulated, and their unhealthy investing preference should be revised; organizational investors should be fostered with faster steps. The third, from the supervisors' level, they should be more market-orientated and strengthen legislation and execution, enhance the pledge mechanism. The fourth, according to the state of our country, an effective system of sponsors should be set up and improved; and make sure it works exactly. The fifth, the system of market makers should be introduced, to guarantee the liquidity and maintain the stability of stock market.Totally, because of our country economic not get to changed mainly, and unstrict of Chinese securities market Securities, and the high risks of the growth enterprise market to come, venture capital market is full of risks which both from the investors and these security dealers. We must take some measures to against the risks of growth enterprise market to make it develop healthily.