Research On Over-raised Funds In GEM

The introduction of the GEM is of great significance on the development of China’s security market; it takes an important step on perfecting our multi-level and diversity of the capital market. But in the process of listed for trading, there are many problems which are against the intension of the introduction of the GEM. One of the most outstanding problems is as the issuing price and PE ratio are high, the phenomenon of raising excessive funds intensified.The small and medium enterprises are difficult to financing, but they can raise excessive funds when they in the GEM market and they cannot use the GEM excessive raised funds reasonable. Based on this, this paper chooses this question for research. Analysis the causes, present situation and effects about the GEM excessive raised funds. Through the external force to promote and institutional change, put forward some constructive suggestions on the improper use of the excessive raised funds. So it is beneficial to the GEM market operation and management of the companies. This paper is divided into five chapters:The first chapter is the introduction, and mainly introduces the research background, research significance, review and comments of the relevant literature, writing ideas, research context and basic framework.The second chapter is from different aspects to introduce the general situation of the GEM excessive raised funds in China.The third chapter is analysis the reason of over financing behavior of listed companies on GEM in China. It also from three angles to analyze the problems that may result from the GEM excessive raised funds.The fourth chapter is analysis the investment situation and effects of the excessive raised funds. Through the comparison between small and medium-sized board, and the company itself in the assumption that there is no super offering under the condition of financial indicators, this paper discusses the impact of excessive raised funds to the GEM companies.The fifth chapter is the management of the over financing of listed companies on GEM in China and the suggestion to the use of excessive raised funds. Including the aspect of system, sponsors and investors. As to the use of excessive raised funds, it can be considered in advance, Improve measures about the use of excessive raised funds.