The Exit Of Venture Capital In The GEM

Chinese Venture Capital, though started late, but the rapid development these years, especially the introduction of the GEM, but also for the development of venture capital wings, the GEM has become the first choice for China’s venture capital exit. But we should also see the launch of the GEM over the past year, there have been many problems. If shares of the "three high" release, a secondary market out of line; performance of the company face, difficult to deliver high growth; venture capital and executive ban, crazy cash is inevitable; sponsor inadequate due diligence, underwriting broker direct investment is not isolated; stock price volatility, continued loss of small and medium investors and so on. Since the existence of these defects, the risk of small investors will continue to accumulate. If these problems can not be resolved, it will seriously harm the sustainable development of the GEM and the capital markets improve, but will also affect the risk of investment. This paper from the perspective of protection of minority investors, venture capital first introduced the basic theory and the status quo, and then describes the current development of China venture capital and focused on the moment of the GEM to exit some of the problems and the evils of investment risk. Finally, the GEM is given of how to improve the protection of small investors and venture capital exit measures and suggestions:If the venture capital industry to develop as a leader, improve their concentration, improve their operational efficiency and regulatory issues unique; reform of distribution system reform, reasonably determine the IPO price; improve the legal system and tax policy, incentives and constraints from different angles Venture capital in the present treatment; development non-profit third parties, improve the information disclosure; Establishment of small and medium Securities Investor Protection Fund and civil compensation mechanism; Promote alternative IPO exit channels for the development of methods to ease the risk of the company listed on blind impulse, reducing the external impulse problems listed; reform of the sponsor system, strengthen the punishment of Li Du; perfect exit system To construct docking markets. I believe that with the constant improvement of China’s capital markets, venture capital exit more smoothly, resulting in the external problems will be resolved.The interests of small investors are effectively protected.