| In recent years, private enterprises, medium and small-sized enterprises have developed rapidly, among which, a number of new knowledge-based enterprises are at the key stage of development. Apart from providing financial support, the introduction of the GEM will optimize the industrial structure adjustment and exert a far-reaching impact on the sustained development of national economy. The practice of GEM development in the foreign market shows that the GEM has many functions while implying a great risk. Therefore, it has great practical and historic significance to analyze and provide proposals on GEM to defend its risks.In this paper, apart from analyzing the various aspects of the GEM theory, the author studied and classified the GEM risks according to the international practice and the conditions of China. The study shows that there are 2 main GEM risks, one is the risk of GEM itself, the other is listed companies' risks, including the risk of operating the companies, etc. Currently, the biggest problem exposed by the GEM in China is that the GEM has a high risk because some big boys who have a lot of floating capitals are suspected of manipulating the stock market. With the increase of listed private business, the listed private business risk will be the uppermost GEM risk.By analyzing the GEM in China, the author suggested some countermeasures to establish a sound legal system, strengthen the regulation, make clear the role of the GEM, perfect the relevant institutions of the GEM, improve the investor structure and foster rational investors, hoping which will be of help to the steady and sound development of GEM in China. The author argues that China's GEM risk defending focuses on eliminating the asymmetric state of the market information, normalizing the market behaviors and safeguarding the legitimate rights and interests of the market participants by strengthening the administrative legislation and improving the supervision of law enforcement. |
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