A, what is GEM
:GEM appeared in the 1970s in the United States, rose in the 1990s, the governments of various countries on the second board of the market regulation is more stringent, and the core of the "disclosure". In addition, the regulators also help investors to select high-quality enterprises through the "sponsor" system. In the long history of the development of securities, the GEM began to correspond to the main board market with large and mature companies, the market image of small and medium-sized companies as the main target and appeared.
The development of other second board markets in the world can also be basically divided into the above two stages. In the late 1970s and early 1980s, the oil crisis caused the deterioration of the economic environment, the stock market long-term downturn on the lack of attraction to enterprises, the securities markets of all countries are facing a great crisis, mainly in the low willingness of companies to go public, the number of listed companies continue to decline, investors are not active in investment. Under such circumstances, in order to attract more newborn enterprises to go public, all countries have successively established the second board market. From a general point of view, most of the second board market in this stage experienced the splendor of the early stage of creation, but basically ended in failure in the mid-1990s.
The GEM Board:
The GEM Board, also known as the second-board market (Second-board Market), is a securities exchange market designed to provide financing and growth space for entrepreneurial companies that are temporarily unable to list on the main board.
The GEM is an important supplement to the main board market and occupies an important position in the capital market. Compared with the main board market, the listing requirements of GEM are often more relaxed, mainly in the time of establishment, capital size, medium and long-term performance requirements.
Three, the establishment of the purpose
(1) for high-tech enterprises to provide financing channels.
(2) To effectively evaluate the value of entrepreneurial assets through the market mechanism, to promote the combination of knowledge and capital, and to promote the development of knowledge-based economy.
(3) Provide "export" for venture capital funds, diversify the risk of venture capital, promote the virtuous cycle of high-tech investment, and improve the flow and efficiency of high-tech investment resources.
(4) Increase the liquidity of shares of innovative enterprises, facilitate the implementation of equity incentive programs, etc., and encourage employees to participate in corporate value creation.
(5) Promote the standardized operation of enterprises and the establishment of a modern enterprise system.