International Comparative Study Of GEM Market Supervision Mechanism

Although the capital market of China developed later than developed countries,its speed of development has been concentrated currently.30th October of2009should be unforgettable in the development history of economy, when the ChineseGEM officially opened. Chinese GEM was opened for the purpose of meeting thefinancial demand of independent innovation enterprises and high-growth companies,which carried the responsibility of technological innovation and economicaltransformation. The issue and development of Chinese GEM could effect most ofindustries in China.The first part of this paper had a look at the main research direction for theGrowth Enterprise Market and introduce the relevant theoretical basis includingCorporate Finance Theory, Efficient Market Hypothesis and Corporate GovernanceTheory. The second part concentrated on the analysis of the development status, theentry barriers, governance mechanism and the successful experiences andunsuccessful lessons of other Growth Enterprise markets overseas. The successfulones included the NASDAQ, AIM, JASDAQ and KASDAQ. The unsuccessfulmarkets included the Neuer and GEM. The third part of this paper focused on thedevelopment of Chinese GEM including the development status, the entry barriers,governance mechanism and the problems during the process of development. Theproblems could be summarized to three perspectives, the first is the disfigurementsof information disclosure system, the second is unreasonable delisting system andthe last one is the transformation of governance mechanism. The last part of thispaper come up with some advices to the development and problems of Chinese GEM with regard to the content mentioned before, and forecast the future of ChineseGEM.There is inherited advantages in the development of Chinese GEM. For thisreason, writer believe that Chinese GEM could become one of the best GrowthEnterprise Markets in the world.