Empirical Analysis Of China’s GEM Liquidity

The Growth Enterprise Market (GEM) is an important part of a countrys capitalmarket，its main function is to open up financing channels specifically for emerginggrowth SMEs and venture capital exit mechanism.GEM market in overseas maturemarket mechanism，has made??a wealth of operational experience，but in ourcountry is the innovation of the securities market. Therefore，the establishment ofthe GEM market in China will inevitably be faced with a series of major challenges.GEM is to provide investors with the opportunity of high-yield，at the same time hasbeen accompanied by a huge investment risk. Since the establishment of the GrowthEnterprise Market(GEM) soon，and the small size of the market，shorter developmenttime than the motherboard dramatic fluctuations in its share price.Liquidity is an important factor to determine the vitality of the securitiesmarket，is also a measure of market quality indicators. Increase market liquidity notonly contribute to an active market，to attract investors，and more importantly，isconducive to the stability of the market price，to ensure the normal functioning ofthe financial markets and to promote the efficient allocation of resources. Not onlythat，the liquidity has also been shown to be an important determinant of assetprices.Expand the theoretical study based on the summary of the domestic and foreignscholars on liquidity，the liquidity and the GEM market trading data to conduct empirical research，the theoretical and empirical problem together its morecomplete exposition. January4，2010to2012，listed on the Shenzhen GEM78Ashares for the basic analysis of samples，the transaction price，the level ofperformance，the size of the company，the influence of the holders of tradable sharesfor basic analysis variables Stepwise multiple regression analysis，the liquidity of thestock market and draw the basic model.On the basis of theoretical and empirical，the main conclusions of this paper:1．The main factors affecting the liquidity of the stock market price，earnings pershare and outstanding capital stock of these variables into the regression model bystepwise regression，and the return on net assets，the proportion of the shareholdingof the top ten shareholders of tradable shares the proportion of factors such asliquidity.2．The share price and liquidity there is a significant positive correlation. Sameabsolute spread，the higher cap，lower the cost of liquidity，illiquid relative to thehigh-priced stocks.3．Earnings per share of outstanding capital stock of liquidity there is a positivecorrelation，and improve the level of performance of listed companies andoutstanding capital stock of scale，and can increase the level of liquidity of thesecurities market.