Study On The Delisting System Of China’s GEM

After more than10years of debate, On October23,2009, the China’s GEM wasset up and started trading. Since October23,2009the GEM was operated for morethan3years, up to December31,2012, there are355companies in the GEM, andreached the total capitalization of924.8billion Yuan. The GEM has played a hugerole in supporting of the high technology enterprise development, encouraging andguiding the social investment, improving our capital market system. But it can not bedenied due to the overall development of China’s securities market lag as well as therule of law, the environment is not standardized, so that GEM exists many problems,such as the high price-earnings ratio, corporate financial data fraud. Especially in the"re-listing, delisting light" guiding ideology, the GEM market system construction isnot very balanced, delisting system construction lagged far behind the reality. Due tothe absence of delisting system, led to has run for more than three years has not yetappeared a delisting of enterprise, which is not possible in the mature capital market.Good and efficient system can keep the delisting GEM overall quality of listedcompanies, improve the operational efficiency of the GEM.The Shenzhen Stock Exchange has a clear understanding of the GEM marketdelisting system is not perfect, and on May1,2012, implementation of the new“Shenzhen Stock Exchange GEM Stock Listing Rules" in my opinion it still existsmany improvements. Therefore, the author elaborated on the basis of the GEMdelisting system, drawing on the useful experience overseas mature GEM, combined with China’s specific national conditions, to make a few suggestions on theimprovement of China’s GEM delisting system, in order to be able to contribute theirstrength for the healthy development of the GEM market and related theoreticalresearch progress. This article intends to explore the following four aspects.Chapter1is the overview of the GEM delisting system. First introduce theimportance of the establishment and development of the GEM market. Second,introduces the general situation of the delisting system of GEM. Finally, clarify theimportance of the GEM delisting system.Chapter2The second section describes the status quo of China’s GEM delistingsystem and compared with the Main Board of the delisting system, the last of theinadequacies of its existence. The author believes that the revised "Shenzhen stockexchange GEM Listing Rules" there are still a lot of problems.Chapter3mainly describes the useful experience of overseas mature GEM, suchas NASDAQ, AIM, HKGEM, JASDAQ.Chapter4introduces the improvement of the system of the GEM marketdelisting system. Useful experience for the overseas mature markets, combined withChina’s specific national conditions. Make proposals on the previously mentionedinadequacies of the current delisting system. Such as, establishing the hearing systemand developing a better capital market environment.