Analysis Of The Background And The Subject Of Chinese Growth Enterprise Market

The founding of Chinese Growth Market (COM) has great significance for the Chinese Venture Capital (VC) Mechanism,multiple-function capital market and other economic reforms. After fully realizing it,researchers and financial institutions have paid much attention to the progress of founding COM,and the progress has been propelled to the research stage of making concrete policies from the discussion stage of relative polices. In Oct 2000,Shenzhen Stock Exchange made the nine Chinese Growth Market Rule-consultation document public,which gave a quite clear framework of COM. Based on the nine documents,the environment,market bodies,and market institution of CGM have been discussed in full view.Chapter one Analysis of Chinese Growth Market's BackgroudIn this part,the paper mainly answered two questions. What is Second Board? What significance will CGM be of for the Chinese Venture Capital (VC) Mechanism,multiple-function capital market and other economic reforms?Firstly,second board is briefly introduced,including several successful foreign second boards and the difference between the main board and the second board. On the base of the nine documents,the paper discussed the purpose of founding CGM,the range of listed companies and the relationship of CGM and Chinese economic reform. Secondly,the relationship of VC exit mechanism and CGM was analyzed,including the introduction of VC exit mechanism in U.S.A,Sweden and China. Thirdly,based on the theory of multiple-function capital market,the paper found that one of the main defects of China capital market is single function. So,the CGM will improve the structure of China capital market. Last,the paper discussed the model of CGM,subsidiary model or independent model.Chapter two Analysis of CGM's listed companyFirstly,the paper analyzed the trade distribution of listed companies in second board,including analysis of trade distribution in several foreign second boards and the forecast of trade distribution in CGM. Secondly,the paper discussed the market institution of stock issuing and pricing.Chapter three Analysis of CGM's participantsIn this part,the paper grouped CGM's participants into three kinds:venture enterprises' sponsors (like venture fund),institutional investors and personal investors. And the paper forecasted the possible main participants. Last,the possible risk and investment strategies were also discussed.Chapter four construction of CGM's institutionBased on the experience of foreign second boards,the paper mentioned some facets in the construction of CGM's institution,which should be cared about,like the institution of strict information disclosure,sponsor and exit. The paper also discussed the relationship of CGM and WTO. Last,I supposed some ideas to the found of CGM.