Gem Listed Company Delisting Mechanism Research In China

Over the past two decades, many countries and regions have established varioustypes of Growth Enterprise Market (GEM) in the development of the motherboardmarket in order to improve the level of the domestic capital market, promoteinnovation and the development of small and medium-sized enterprises (SMEs) tomeet the needs of the investor’s diversified investment. We have set up our own GEMin response to market demand, but it is still not perfect. After the investment boom,many market participants have to face a sharp decline in market credibility. A largenumber of low-quality companies in the market dragged down the overall quality of themarket, and GEM can’t fully play its role in pricing and optimizing resource allocationdue to lack of liquidity. People began to think about the reasons. The GEM delistingsystem attracts more and more attention and discussion.This paper is dedicated to the study of China’s GEM delisting mechanism. It is animportant content of the GEM, the effective implementation of the delisting system isof great significance for the development of the standardization of the entire stockmarket. Firstly, this paper defined the basic framework and the concept of delisting,and stressed the need for the implementation of delisting mechanism. Secondly,through a comprehensive and systematic understanding of the overseas GEM delistingsystem and implementation details, I am looking for its groundbreaking and innovativehighlights. Finally, I will conduct a feasibility analysis combined with the current stateand environment of the running of the GEM delisting mechanism and give someconstructive comments to improve our GEM delisting mechanism. In addition to theappropriate improvements the existing delisting standards and delisting procedures, thispaper pays more attention to emphasize the improvement of information disclosuresystem and some of the institutional arrangements about delisting companies,especially some problems about the whereabouts of the enterprise after delisting andthe protection of the interests of the investors.