On The Improvement Of The GEM Listed Companies' Delisting System In China

The growth enterprise market (GEM) is set up for the high-tech small and medium-sized enterprises which are in the development stage; it lays emphasis on the company's future development potential. To control the market risk, the GEM needs a more reasonable delisting system because its listed companies are not so mature as those companies listed on the main board both in scale and performance and have greater market risk. On the one hand, there is no delisting in nearly five years since the GEM was founded, on the other hand, there are many problems include violations and fraud are become common occurrence, which makes the academic circles began to re-examine the rationality of the delisting system.In fact, with the development of the growth enterprise market, some prominent problems appear. Part of the delisting standards are not practical, lack of maneuverability, some concept definitions are not very clear, the delisting cycle is too long and the unsound civil action system of security etc., all these negative factors impact the implementation of the delisting system.To solve the problem, system improvement is an essential part; this paper is devoted to the study of the delisting system improvement. Firstly, determine the concept, clarify the range of study, secondly, analyze current GEM listed company delisting system in our country,summarize the problems, and take example by the GEM delisting system in foreign developed capital markets, and combined with ours. While to improve the system itself, we also need to pay attention to the building of delisting concept and the construction of supporting mechanism. Finally put forward a more comprehensive and practical perfect vision.The perfect vision of GEM delisting system in this essay is explained though three aspects: On the conception of delisting standards, I want to improve the original standard both in macroscopic and microscopic views by adding or changing some standards and make it more practical while reflecting the company's operating conditions. On the conception of delisting procedures, though improving the listed companies' re-examine system and modifying the law loophole to guarantee the procedure is legitimate, in this premise, to make the procedure more convenience by shortening the delisting cycle or other methods. On the conception of delisting supporting mechanism, take the building of delisting liability retroact mechanism and improving juridical protection of investors as the principal thing,accompanied by other supporting mechanism such as information disclosure regulation, to make the operation of GEM delisting system better.