The Research On Operating Mechanism Of GEM Market In China

In the new era, our government has issued series of new policies to develop emerging industries and to encourage innovation. Small and medium-sized enterprises about technological innovation and innovative business model are also emerging; a large number of small and medium-sized enterprises has entered a fast growth phase. The rapid development of small and medium-sized enterprises and financing at this stage model are in contradiction, the original financing pattern cannot match the high-speed development momentum and needs a new financing mechanism urgently. At this time, the Growth Enterprise Market (GEM), with the characteristics of lower the threshold into the market, more attention on business growth and future development prospects, should be launched, in this way, more innovative emerging small and medium-sized enterprises can grow fast. The establishment of the GEM provides a green channel for venture capital exit, and promotes the development of venture capital investment in our country. Therefore, the establishment of the GEM has important practical significance. The establishment of the GEM is benefit for our country to construct multi-level capital market, to accelerate the development of China's fast and good economic momentum, so we can say the establishment of the GEM also has a strong theoretical significance.GEM has been created one year ago, the overall development trend is good. GEM not only provides a more financing channel for high-tech enterprises and (SME), and it is convenient for the withdrawal of venture capital investment. In spite of all the achievements, we should also see the problems existing in GEM, such as "three high" problems, the "roller coaster" phenomenon in stock market, and a lack of market regulation, all the operational issues above have reflected there are still problems such as issuing mechanism is unreasonable, the regulatory mechanism is not perfect and exit mechanism is totally unseen in our GEM market. Unreasonablity of the operating mechanism will reduce the efficiency of overall market. Therefore, the research on operating mechanism of the GEM market is needed urgently at this stage and so is to construct market operation mechanism which fits our own GEM market.Take study in the conducting mechanism of our GEM market, optimizing it which contains four parts:First part, the related concept defined and theory foundation. Firstly, define GEM market, conducting mechanism of GEM market, and the type of company that come into GEM market, through concept defining to find out character and concept of GEM market, the difference with main board market and connection between capital market, content, connection and position contained in the conducting mechanism of GEM market.Understand the type of listed companies of GEM by the definition of listed companies. Secondly, get the inspiration good for our GEM running though carding and evaluation life cycle theory of the SME, transaction costs theory and the asymmetric information theory, it's strength control market risk, reduce transaction costs maximum, disclosure information fully, strength corporate governance mechanism in the operation of the market.The second part, analyze the operational status, existing problems and the reasons of GEM market. Find out the problems of high stock price, high price-earnings ratio, raise funds exceedingly, lacking regulation, the imperfect institution and so on though researching the status of stock price, price-earnings ratio, raise funds and regulation of GEM market, and analyze the reasons from the perspective of operational mechanism, it's the release mechanism is unreasonable, the regulatory mechanism is not perfect, incentive mechanisms not in place, the trading mechanism is unreasonable and lack of exit mechanism.The third part, study from GEM market aboard. Find out the good inspiration to our GEM market development and study it through studying developed GEM market aboard to analyze the practical running way of the issuance mechanism, monitor mechanism, inspiring mechanism, trade mechanism, and combine the specific circumstances of our GEM market.The fourth part, optimize program design of our Gem's mechanism. It comes to the fourth part of this article, that is the optimization program design of Gem's mechanism, by the definition of concepts and theories in part 1 , on the basis of the status of Second Board in part 2, and the experience reference in part 3. The optimization program design of our Gem's mechanism needs overall operational mechanism of market economy as a premise that is the organic combination of the three parts: price mechanism, supply and demand mechanisms and competition, at the same time it needs to follow the high liquidity and low market risk principles, to put the price mechanism as the core, the supply and demand mechanism as a guarantee, the mechanism of competition as the key, the risk mechanism as a basis, the incentives as a driving force, and then put all of the above as a thought that can optimize mechanism of the Growth Enterprise Market. The operating mechanism interrelated, interact, and restrict between each other, at last it reaches to Optimum combination state, on the basis of it, improving the operation mechanism of the Growth Enterprise Market .