Research On The Correlation Between GEM And NASDAQ

Since GEM established in 2009, it has passed a tortuous development throughout its five years development. Eighteen presented the strategic adjustment of economic structure as the main direction of accelerating the economic transformation in 2012, then the GEM appears a scene of prosperity. In this article, it has proved that the Eighteenth has important effect on the GEM by the empirical analysis. Despite the A-share market is always hovering around 2100 points. In stark contrast, the entire GEM did strong performance in 2013. China’s economic transformation has had preliminary results, to continue in-depth economic restructuring and strengthen economic reform, it is necessary to develop GEM. GEM is the "barometer" which can reflect the situation of China’s economy. It can reflect the quality and quantity of the China’s economy sensitively. The GEM is an important part of China’s capital market in the future, it represents the direction of China’s economic reforms.Healthy development of the GEM is very important to China’s economy.As a representative of the new economy, there are many similarities between GEM and NASDAQ. So this article is based on the comparative study between GEM and NASDAQ market, to analyze the development of GEM during the China’s economic restructuring. First, introduces the basic theory of the relevance between GEM and NASDAQ, including the concept and characteristics of the growth enterprise market and the influence on the main-board, the establishment and development of GEM and NASDAQ, and the stock price determinants. Then the paper has made a detailed analysis of the relevance between GEM and NASDAQ market, sectors and stocks through the empirical models, the empirical displays that GEM and NASDAQ has a strong correlation after the Eighteenth in 2012; this shows that China’s new economy is joining with the world’s new economy, so GEM is the most promising market of China’s capital market in the future. Last, by comparing the two markets, analyzes the formed factors about the two associated markets, on this basis, drawing on the successful experience of NASDAQ to put forward the corresponding countermeasures and suggestions for development of the growth enterprise market in China.