Mainland Private Enterprises To Hong Kong Gem Study

The fund deficient and narrow financial channel are becoming the main factor that restrict many Chinese private enterprises to develop healthily. The establishment of Hong Kong Growth Enterprise Market (HK GEM) not only can consolidate its international financial center position, but also provide the chance that the interior private enterprises develop financial channel and enter international capital market. The private enterprises listed in HK GEM must obey the international capital narket regulation and standardize their operation and management according to modern enterprise rules. They can enter international market by bridgehead Hong Kong. Therefore, still will be helpful to induce and sum up useful and practical means by studying the interior private enterprises listed in HK GEM.This paper has three parts:In the first part, I intrduce the HK GEM, and analyze the motive and chance of the interior private enterpises listed in HK GEM.In the second part, I study perfecting the corporate governance. There are four sections in this part, which is the key point of this paper. The first and second section shows the intension and function of the corporate governance and defines the theory on the corporate governance and specifies the boundary of this paper. The third and fourth section, I study the means of perfecting corporate governance. This is the main section of this part and this parper. The interior private enterprise is lack of corporate governance, so establishment efficient mechanism responsible to the shareholders and Perfecting corporate governance according to the international practice are main problem and the only way.In the third part, I study standardizing financial accounting of the interior private enterprise listed is HK GEM. There are three sections in this part. First, I analyze the demand of HK GEM to listed company. HKGEM doesn't ask the listed company must be profitable, it hopes the financial accoutning is transparent and normal. Second, I study the means of standardizing financial accounting. This is the main section of this part and another key point of this paper. Because there are many connected transactions between the private company with controlling shareholders and some transactions aren't equal, the key of standardizing financial accounting is to standardize the connected transaction and information disclosure.The private enterprise can choose financial adviser of high reputation to ensure its listing in HK GEM. So standardize financial accounting and gain the investor's trust is the guarantee of the private enterprise listing in HK GEM. I hope it will be helpful to the interior private enterprises.This paper is not perfect due to the time and my ability. If there is any suggestion and disagreement on this paper, please let me know.