Research On Relevant Issues Of Growth Enterprise Market In China

The emergence and development of Growth Enterprise Market ("GEM") in the global financial market is not just occasional, but an inevitable result of new economy and globalization. The favorable effects GEM has on the development of society and economy in the new economic era should not be underestimated. These favorable efforts will cover various aspects, including economic growth, system innovation and even social stabilization. GEM in China will be launched in near future and we are confronted with a number of questions. How to fully use the favorable efforts of GEM; how to lower potential risks GEM may bring about; how to ensure stable and healthy growth of GEM with policy environment and infrastructure; and how to facilitate the new economy with the help of GEM? All these are essential questions for development of the nation's overall economy and even the Chinese nation's great revival.This article starts from theoretical analysis on functions and efforts of GEM, and through comparing and analyzing market data, sheds lights on the necessity and timeliness of the launch of GEM in China, potential risks GEM may bring about, and potential influences GEM may have on the main markets. Based on such analysis and use GEM experiences in developed countries for reference, the article discusses the design of system and regulation for GEM according to realistic situation in China. Particularly, it also discuses and analyzes the establishment of healthy and complete policy environment and infrastructure for GEM, based on today's new market environment following the significant change in China's financial market in the past few years, in order to provide theoretical fundamentals and system preparation for the launch of GEM in today's economic and financial environment.The success of GEM operation in China calls for the support of a series of policies and infrastructure. These should include strengthened legal system to clear legal obstacles, adequate policy room to enable system innovation, more deregulation to use market orientation and operate with international convention, and establishment of a self-discipline system to improve monitoring efficiency. Based on the analysis on the conditions and pros and cons of the launch of GEM, we conclude that the best time to launch GEM is at present. Currently, most preparation work for GEM is done. The regulatory environment for GEM is relatively complete. There are adequate qualified company resources for GEM. The features of economic development in China provide "immunity" for GEM to market risk and strength of international financial markets also creates great condition for the launch of GEM.