To Complete The Delisting System Of GEM

There is no relevant regulation towards delisting mechanism of the GEM listed in Administrative Measures for Initial Public Offerings and Listing on the Second Board which was come into force on May1,2009, but only mentioned in Article51. So when the Shenzhen Stock Exchange issued Shenzhen Stock Exchange, Growth Enterprise Market Listing Rules on June5,2009, the terms of delisting mechanism drew extraordinary attention. The GEM delisting mechanism of our country retained and followed the relevant regulations of the main board delisting mechanism. At the same time, it added three delisting situations, and will start carrying on the fast delisting procedures for these three situations, so as to shorten the delisting time, speed up delisting process, and implement direct delisting. Although our current GEM delisting mechanism has been significantly improved comparing to the main board market, the GEM delisting system has many problems, such as the fuzzy delisting criteria, lack of accountability mechanisms for delisting, inadequate protection for investors etc from the delisting situations from Shenzhen Stock Exchange, Growth Enterprise Market Listing Rules. This is clearly negative on the growth enterprise market, even on the capital market.This article starts from legal issues of GEM delisting mechanism in China, introduces the meaning of the GEM delisting mechanism after deeply understand, believes that the GEM delisting mechanism of our country mainly includes delisting supervision organ, limitation of rights of delisting improvement, delisting standards, and delisting procedures. Then, it analyses the delisting reasons of GEM from the inner values of stocks and fluidity, through comparing to delisting mechanism of main board, clearly recognizes the features and existing problems of GEM delisting mechanism. Comparing to the main board, the GEM retained some criteria’s of the main board, such as constant loss, and was added three delisting situations at the same time which would implement fast delisting and direct delisting. By drawing on the successful experience in GEM delisting mechanism from mature overseas capital market, and from the accountability of delisting and investor protection point of view, we think over how to improve and perfect the GEM delisting mechanism of our country, and provide suggestions.