Empirical Research On The Financial Conditions Of Growth Enterprises Market In China

GEM as an important part of China’s securities market is increasingly becoming the focus of attention.Since China opened GEM in Oct. 2009, a series of problems, e.g. fairly high PE ratio, high operational risk, and inadequate profitability, have surfaced and held back many investors. This has drawn broad attention of all sectors to GEM and market mechanism. By the GEM and Shenzhen stock exchange main board A Share, the Shanghai A-share, comparative analysis of the main financial indicators of the SME board,To identify changes in financial position of the GEM law, which has important theoretical and practical significance for further improve the GEM market in China.The paper consists of five chapters. In chapter 1, the author introduces the focus of analysis of the necessity and reality of China’s GEM market. In chapter 2, the author defines related concepts. And there is a general description of the current study of domestic and international GEM and the major study results. In chapter 3, the author describes the sample quantity, statistical methods, designated financial indexes and analytical means. The author compares the four main boards (i.e. Shenzhen stock exchange main board A Share, Shanghai Stock Exchange A Share, SME board and GEM) vertically and horizontally, and then induces the present operation achievement and main problems of GEM in chapter 4. Some suggestions and advice about the aforementioned problems are provided in chapter 5.