Research On Exit Mechanism Of China’s GEM

Exiting mechanism on the Growth Enterprise Market (GEM) is established as the markethandle error correction and error mechanism. The establishment of the second board marketexit mechanism is very beneficial to the whole market full of fresh atmosphere, to optimizethe quality of listed companies, and to promote the sustainable development of the company,but also conducive to safeguarding the interests of equity investors interests. The quality ofthe GEM market system must contain a market exit mechanism. Delisting mechanism on thesecond board market has been to the listing regime as much attention, until mid-2009, beganthe formal establishment of the GEM market delisting system, and it is to follow the board,small board of exit mechanism established, so it is only short-term temporary optimize theirGEM complete development of the market, but later such as listed companies more exposedto malicious operating false financial and investor interests often damaged not does notremedy all the problems. The next two years, the development of improved speed of the thedomestic second board market exit mechanism slightly speed up to11years by the end ofNovember, when the Shenzhen Stock Exchange released a GEM delisting system, andformally implemented on May12. The new system compared to the old system, made manyimprovements, including the new provisions of the delisting standards of the delistingprocedures quick and simple delisting after whereabouts for its own transfer agent into thesystem, as well as the final investment the stakeholder interests maintenance of the system hasthe provisions. However, the existing GEM delisting system still problematic, so focus onin-depth research the overseas mature GEM delisting system comparison and summarized inthis article, combined with China’s actual adoption of conducive and suitable for our needsperfect GEM delisting system recommendations. Focus on analysis of the the U.S. NASDAQGEM market, the UK ATM Alternative Investment Market Growth Enterprise Market of theHong Kong GEM, Korea KOSDAQ GEM market exit standards, procedures, channels, andthe interests of investors in the market maintenance aspects of the comparison explore. Theessence of the GEM market has a high-risk investment, and therefore reasonably practicablepoor lack of competitiveness of companies eliminated from the securities market. Otherwise, it is difficult to build a sound, well the GEM investment market system.