Comparative Studies Of KOSDAQ, JASDAQ And The GEM Of China

China’s growth enterprise market (GEM) brewing for nearly10years operated on October23,2009in Shenzhen, which means the construction of multi-level capital market in China has taken a huge step. The GEM is designed to provide a new financing way specifically for small and medium enterprises and emerging technology companies. The appearance of the GEM provides a platform for the high-tech enterprises to raise funds and fosters its development and growth. The GEM has become the cradle of the growth of high-tech enterprises. Throughout the home and abroad, many countries have established the GEM, such as NASDAQ, KOSDAQ, JASDAQ and Hong Kong’s GEM of China and so on. The GEM development level of these countries and regions are different. The development of NASDAQ is the most successful. Although the market development of other countries is not as well as that of America, some experience and lessons in the development process also enlighten us.China’s GEM was founded more than four years. Although the large increase from the low of575.83up to now1645.68(the data of September24,2014), the rate reached186%, the high P/E rate shows that there exists the development gap with other countries. From the listing, after rising for2months, the index peaked at1239.6in December20,2010.Then it went down all the way till to575.83in December4,2012.Later it rebounded and reached more than1600points now. The high P/E rate, the absence of delisting and the low proportion of high technology stocks show that its own market is not mature. The successful market is a process of survival of the fittest. It can promote the development of multi-level capital market and perfect the market system of the capital. The other failed markets mostly have adverse selection, leading to the GEM increasingly fragile. This paper uses the comparative analysis method to analyze the related index of KOSDAQ, JASDAQ and Chinese GEM. It explores the influence factor for the success of the GEM and put fonward reasonable suggestions for the development of venture capital market in China. The first part elaborated the selected topic background and the selected topic significance and the innovation and inadequacy of the paper. The second part is the literature review. It analyses the domestic and foreign present research situation respectively. The third part reviews the creation background and development process of Japanese and South Korea’s and china’s GEM, and compared the index of the net profit, total market value and index trend. The fourth part is to analyze the influencing conditions for the success of the GEM. First, the level of science and technology, such as the number of high level scientific researchers in per million people. Second, the comparison of the risk investment fund number and the amount of money. Third, the proportion of GEM and the main board to technology stocks. Fourth, state support for the development of the GEM, such as preferential tax. Fifth, comparison of the related transaction system. The fifth part, according to the defects of China’s GEM market, combined with the summarization of the experiences and lessons of other countries in the process of the development of the GEM, it puts forward policy recommendations of perfecting our country’s GEM. They mainly include promoting innovation, encouraging the venture capital development; lowering the listing standard, providing financing channels for SMEs. Establishing strict delisting and new system. Carrying out delisting and newly listed at the same time to promote the balance of supply and demand. Establish strict information disclosure system and prevent the occurrence of violations and dishonest acts. Establishing rotating plate mechanism to improve the efficiency of resource use.