On Legal Lssues Of GEM IPO In China

GEM (Growth Enterprise Market) in China is a historic milestone in the securities market after 10 years of meticulous preparation, going through ups and downs and a lot of theoretical research and discussion. GEM, also known as the second board market, is a concept corresponding to the existing stock i.e. the motherboard market; it mainly supports SMEs, high-tech enterprises and small businesses development, provides them financing services, meanwhile promote China's venture capital funds and venture capital industry.Since China's GEM has just been set up, it faces many new challenges. Therefore a series of new issues are on the emergence for instance how to list on the GEM, why to list on the GEM, matters needing attention when listing on the GEM, as well as the major legal problems of GEM listing, etc.. During the preparatory process for the GEM, the discussion was largely focused on the market mechanism's construction and the sustainable development of the GEM, but the GEM-related legal issues are relatively less involved. This paper attempts to investigate the issue terms of GEM listing and its legal matters needing attention before listing form jurisprudential perspective. The subjects involved in this study are the SMEs of "two new six high" that are to be listed on the GEM.