The Reform Study Of The Issuing System In GEM Of China

The rise of the growth enterprise market (GEM) which would be starting in October of2009would enhance the developmental requirement of the multi-level capital market and be the milestone in the process of a well-developed system of capital market. The GEM can be the solution to finance problems of the small and medium-sized corporate, provide a valid retreat channel for private entity (PE) and venture capital (VC). In the meantime, it is also the need for our country to develop the economy and promote the development of innovation-type country. As a new capital investment market, the GEM bears much expectation so that it attracted much attention just in its beginning. However, its development could not reach the people’s expectation in the first two years. The gradually rising price earning ratio (PE ratio) and the high issue price have been collision with the expectation of market participates. Many problems about the GEM became more and more prominent, like increasingly heavy ultra-raised funds, information disclosure and PE corruption.As the fundamental system of securities market, issuing system is not only the deciding factor of the current situation in securities market, but also the root of imperfection in the market system and structure. The thesis tries to start stating capital market of the GEM from the aspect of the reform of issuing system, explores to study the defects and problems of the issuing system in the GEM, and finds out the obstacles that can influence the development of the GEM. On the basis of the statement the mentioned-above, the thesis offers the appropriate suggestions for the reform of issuing system of the GEM so as to promote the healthy development of the GEM.Therefore, the principal line of this thesis is that starting from objective of Chinese GEM issuing system, on the basis of the present deficit form the present GEM, the thesis offers the direction of issuing system reform, and also states the relative suggestions suitable to the present GEM issuing system. The thesis also holds that the trend from Chinese verification system to registered system is evitable and that the matched system should be built. What’s more, the thesis also explains the necessity of introducing the investor management system. As for the listing conditions, the thesis makes an suggestion of building multiple listing condition and perfecting the listed company through corporate governance. In the last chapter, an real case of a company applied for listing can show vigorously the necessity of GEM issuing system reform and all kinds of practical problems that the issuing system cannot conform to its own objective.