The Growth Enterprise Market Must Withstand The Test Of Market Volatility.

NASDAQ has been most successful in the global growth enterprise market.

After nearly 40 years of development, the NASDAQ index, which reflects the change in the Nasdaq stock market, has become one of the most influential stock market indices.

According to the insiders, from the international experience, the construction of the growth enterprise market can withstand the test of market fluctuations and index fluctuations, because the capital market itself is cyclical, and the market downturn does not mean market failure.

Stock prices fluctuate at the initial stage of overseas growth enterprise market

At present, NASDAQ's index includes Nasdaq composite index, Nasdaq 100 index, NASDAQ CleanEdge US mobile series index, NASDAQ Biotechnology Index, industrial share index and insurance share index. NASDAQ also introduced trading open-ended index investment funds and other structured products, and actively developed index and other index based derivative securities for global capital market.

The Nasdaq composite index includes more than 5000 stocks, covering all the new technology sectors, including software and computers, telecommunications, biotechnology, retail and wholesale trade, including Microsoft, Intel, AOL, YAHOO and other well-known high-tech companies, has become one of the most influential securities market index, and more comprehensive.

From a historical perspective, in February 8, 1971, the NASDAQ system began to offer real-time trading quotations for 2400 high-quality OTC stocks, while the NASDAQ index was the average index of stock prices reflecting the change of Nasdaq stock market, and its base index was 100.

On the whole, NASDAQ has the typical characteristics of the growth enterprise market in this period. The listed companies are in the initial stage of their business, with lower share price, higher risk and larger share price fluctuation, and the paction is dominated by ordinary retail investors.

In 1991, the index exceeded 500 points, and the participation of institutional investors rapidly increased.

In July 1995, the NASDAQ index reached 1000 points, and in 1999, it entered a fast rising orbit due to the Internet market. In March 2000, 10 reached a record high of 5048.62.

But with the collapse of the global network bubble, the NASDAQ index has adjusted sharply, and dropped to 1108.49 in October 2002. Although it has gradually stabilized, it has not yet passed 3000 points under the impact of the global financial crisis.

The London Stock Exchange's AIM market is also a model for the growth enterprise market.

In June 1995, the AIM market was set up. In 1996, the AIM market index closed at 1042.9 points, rose to 3369.9 points in 2000, and the growth rate was much larger than that of the main board. At the end of 2002, the AIM market index closed at 1893.7 points, but the amount of financing and paction volume increased.

In early 2009, in the wake of the financial crisis, the AIM index plunged to more than 370 points, which has stabilized in the near future.

Market construction can withstand the test of index volatility.

According to the insiders, the construction of the growth enterprise market can withstand the test of market fluctuations and index fluctuations, because the capital market itself is cyclical, and the market downturn does not mean market failure.

The major overseas growth enterprise market has experienced the ups and downs of the market index. But with the improvement of the overall economic situation, these markets have made new progress in recent years.

Foreign studies have shown that the growth rate of GEM market is low, the fluctuation of stock price is large, liquidity risk exists, and market performance is somewhat out of line with the main board market, which is a relatively independent high risk market.

According to a report from Bohai securities, from the experience of overseas growth enterprise market development, the GEM market usually has a higher premium at the initial stage of listing, and it can easily lead to irrational speculative speculation. However, with the gradual increase of rational investment in the market, speculative bubbles have been squeezed, and the gem index has come down. The over profit of the GEM market relative to the motherboard market has also been narrowed.