Research On China's GEM Development

In the 1990s,several countries established their Growth Enterprise Market(hereinafter as GEM) to resolve the problem of financing for the small and medium enterprises,in addition to the main stock markets.In China,there are a very large number of small and medium enterprises.Financing is also a very severe problem for most of them.So the founding of China's own GEM will play a significant role in its economic development.However,to better control the risks,China first established Small & Medium Enterprise Board(hereinafter referred to as the SME Board) in the Shenzhen Stock Exchange in 2004.Since then,China has gained experience from running the SME Board for the founding of its GEM.In the 5 years after the establishment of China's SME Board,it helped China to gain valuable experience for the founding of the future GEM.However,the SME Board has also exposed problems which hinder its development.This thesis focuses on the SME Board and its listed companies to analyze the problems,especially the problems emerged in the transition of SME Board to GEM.It uses analysis methods such as comparison,induction and deduction to draw the conclusions such as the flaw and shortcoming in its listing requirements,risk pre-caution,information disclosure and regulatory regime. Based on the conclusions,this thesis proposes suggestions to solve the problems and promote founding and healthy development of China's future GEM.