The Study Of System In GEM Of China

After nearly a decade of careful preparation, Chinese Growth Enterprise Market opened in the Shenzhen Stock Exchange in October23,2009. There were28new shares of GEM listed on the same day in October23,2009. As of April2011, China’s Growth Enterprise Market has been running a year and a half, and the number of listed companies has reached to200. GEM in China was just founded, and the main services positioning in the emerging industries, especially high-tech industry, the purpose is main to make up for the shortcomings that temporarily unable to direct financing. Chinese GEM and Main Board are corresponding to each other, and GEM is also an important complement of the Main Board. Currently, many countries have set up the Growth Enterprise Market, and NASDAQ is the most successful. It has become a banner of global SME financing and development. Simultaneously, Hong Kong GEM is the most similar to Chinese GEM, and the problems and achievements in its last years have provided the feasibility of reference for us.At present, GEM is just opened in China, and is in a stage of gradually expanding. There are many problems from the current situation, such as "three high", executives frequently leave, ban cash Restricted Shares and so on. Traced, GEM system should be detailed study and analyzed one by one to find out the system defect, what caused the negative phenomena. The relevant rules and norms of GEM is a strong threshold for listed companies that coming into GEM. And the rules are able to guarantee the healthy and stable development of the GEM. The systems mainly include the listing system, exit system, trading system, information disclosure system and monitoring system, etc. GEM-related rules and norms are different in different countries and regions. How to reasonably develop and improve relevant systems is an important prerequisite and guarantee for the stability and prosperity of the market. Mining loopholes and flaws in the GEM system is an important process to improve GEM system specification.By observing the current turmoil phenomenon in the Growth Enterprise Market, this paper analyzed many relevant systems of Chinese Growth Enterprise Market, such as "Shenzhen Stock Exchange Growth Enterprise Market Listing Rules","Measures for the Administration listing sponsors" and so on. Based on the Comparison of legal rules of "Nasdaq Listing Rules" and "Listing Rules-Growth Enterprise Market" in Hong Kong, many problems were found in Chinese GEM, such as the financial indicators were exaggerated, lack of investor protection delisting rules, lack of the necessary mechanisms to transfer, etc. To solve the problems discussed above, this paper proposed that it is necessary to construct multi-level listing standards and flexible delisting system. And the introduction, improvement and innovation of relevant systems provide necessary theory support for the stability and prosperity of Chinese capital market.