Research On The Delisting System Of Our Growth Enterprise Market

A mature and complete enterprise market is the unity of an organic capital market including the delisting system. China’s enterprise market was set up on October,2009. Since its establishment the imperfection of the delisting system in Chinese growth enterprise market results in exposing lots of problems. In the idea of ordinary investors, the delisting system is usually inapplicable to the listed companies. Regarding the high expectations of the market, although the company at the risk for poor management or delisting, all investors thinks companies will be restructured rather than be delisted. Therefore, the atmosphere of enterprise market is influenced by the speculations of investors. This has seriously affected the healthy and stable development of enterprise market. Obviously, establishing a scientific and efficient delisting system is an effective way to effectively manage the risk of GEM and optimize the allocation of market resources. Thus, perfection of a feasible and effective delisting system in Chinese mainland’s GEM is urgently demanded to materialize the development of GEM continuously, healthily and steadily, and better perform its functions and values. The Shenzhen Stock Exchange, which hosts GEM, enacted a new rule for delisting system in2012. In China, as the new regulation announcing, there is a positive significance of the perfection of delisting system of GEM. Nevertheless, the new rule also exposes many problems in the concrete implementation and operation process. This still requires that we seriously study the delisting rule of GEM so as to provide the law bases for perfecting the delisting system in China.This paper will analyze the characteristics of GEM, taking the overseas operation experiences of more perfect development of GEM and regulatory system as references. The object is to explore the delisting system of Chinese GEM so as to propose some suggestions for our system.Firstly, studying the delisting system of GEM should start from its implications and theoretical foundation. The basic contents of concept and characters are analyzed, meanwhile, the law bases for delisting system is deeply expounded as well.Additionally, the present situation of delisting system of GEM is discussed from three perspectives:investors benefit protection, the listed company and the Stock Exchange. The existing problems of delisting system of GEM are analyzed from these three. This paper starts from the unreasonable regulations and problems, the reasons for these problems are analyzed subsequently. The delisting system of GEM is strongly analyzed from these three connected perspectives is an innovation of this paper.Finally, the existing problems of delisting system of GEM which come from the investors benefit protection, the listed company and the Stock Exchange are improved, then, a relatively perfect delisting system of GEM is constructed, which manages properly of each participants’rights and their commitments. Consequently, this would help to achieve a state of equilibrium. In terms of investment, specifically, the key of delisting system of GEM is to negotiate solutions that balance the interests of all of the three parties, which could help us establish a growth enterprise market.