Research On The Delisting System Of Growth Enterprise Market

June 5,2009, the Shenzhen Stock Exchange issued "Stocks of GEM Listing Rules in Shenzhen Stock Exchange ", to regulate the operation of GEM Stock listing in the Shenzhen Stock Exchange, one of the most concern is the delisting system. The delisting system of GEM retains and follows the relevant provisions of the main board delisting system. At the same time, it added three delisting situations, and will start the fast delisting procedures for these three cases, to shorten the delisting time, to speed up delisting process and direct delisting. Although our current GEM delisting system has been significantly improved as the Main Board, the Growth Enterprise Market delisting system has many problems, such as the fuzzy delisting criteria, lack of accountability mechanisms for delisting, inadequate protection for investors etc. This is clearly negative on the growth enterprise market, even on the capital market.This article starts from defining of GEM in the multi-level capital market, introduces the features and functions of GEM, clarifies the definition and actualized meaning of the GEM delisting system. By drawing on the successful experience of GEM delisting system in overseas capital market, drawing lessons from the main board and sme board in China, clearly understanding the characteristics and existing problems of our GEM delisting system, and from the quality optimality of listed companies and investor protection point of view, we defined our country’s GEM delisting system as the way of delisting, the standard of delisting, the program of delisting and the risk prevention of delisting, thought over how to improve and perfect the GEM delisting system of our country, and make recommendations.The basic structure of this paper is as follows:Chapter I introduces global GEM survey and the development of GEM in China, studies literatures of the role of raised delisting system, the delisting measures and the delisting risk prevention. This paper defined our country’s GEM delisting system as the way of delisting, the standard of delisting, the program of delisting and the risk prevention of delisting.Chapter II defines GEM in the multi-level capital market, introduces the features and functions of GEM, clarifies the definition and actualized meaning of the GEM delisting system.Chapter III referenced the success experience of GEM delisting system in mature capital market. It mainly draws NASDAQ, AIM and Hong Kong GEM market delisting system.Chapter IV compared with the main board and sme board delisting system, from delisting mode, delisting criteria, delisting procedures and delisting risk prevention, reflected on the problems in the capital market.Chapter V introduced the current GEM delisting system from delisting mode, delisting criteria, delisting procedures and delisting risk prevention, and pointed out its problems. Compared with the main board and sme board, the GEM added three new delisting criteria, and practice quick delisting procedures for the three delisting standards, and direct delist. In this way, the GEM may have problems not only left by the main board, but also arise from the new standard. Based on the summary of the features of GEM delisting system in mature capital markets, conceived and completed our GEM delisting system from the delisting mode, delisting criteria, delisting procedures and delisting risk prevention, this chapter stressed on perfecting delisting accountability, investor protection and other related systems.