A Study On The Legal Perfection Of IPo Exit Mechanism In GEM Of Venture Capital In China

The venture capital industry of China, which has developed more than thirty years, still has a long way to go in the scale and performance. The main benefit of venture capital investment comes from the smooth exit of venture capital in the project. Generally speaking, the key to make our venture capital grow rapidly is to improve the IPO Exit Mechanism in GEM. Therefore, compare with the situation of the foreign venture capital, the paper would put forward some useful suggestions base on the analysis of the Legal System of IPO Exit Mechanism in GEM of Venture Capital in China.This paper consists of four parts.The first part introduces the basic principle the legal system of IPO exit mechanism of venture capital. Firstly, the paper would discuss the legal basis and the significance of this exit mechanism in the actual operation. Secondly, the paper would introduce the main exit methods and realistic choice of venture capital.The second part describes the development status and legal problems of IPO exit mechanism in GEM of venture investment in China. The paper would describe the legal problems of IPO exit mechanism in GEM of venture investment in China, for example, the listed conditions are lacked of hierarchy, the suspending review is too vague, the “major” content is not so clear, and the stock lock-up period is unreasonable.The third part analyzes the inspiration of the IPO exit mechanism in GEM in foreign countries. In this part, compared with the venture investment uses the IPO exit mechanism in NASDAQ Market of America、New JASDAQ Market of Japan and Indo Next Market of India, the paper would present the institutions and characters of the three foreign Growth Enterprise Markets.The final part is to give the meaningful suggestions how to refine and optimize the exit mechanism based on the discussion that the legal problems the inspiration.